Oil and Gas, Eurasia Drilling
Two years after the failure of the transaction to sell 46% stake to Schlumberger, which could become the largest on the Russian oilfield services market, shareholders of Eurasia Drilling Company (E
In January - September 2016, the net profit of Russian subsidiary of Eurasia Drilling - drilling company Eurasia - decreased by 20% and amounted to 6.57 billion rubles.
"Lukoil" had issued a credit of $ 150 million to its key contractor Eurasia Drilling Company (EDC), "the Vedomosti" reported with reference to Fitch's data. The loan is secured by a share in the largest subsidiary of EDC - Drilling Company "Eurasia" (DCE) worth $ 180 million, which was around 23% of the book value of the company at the end of the year, the agency informs.
Eurasia Drilling cancels the listing on the LSE from November 18th.
The plan of the deal on the purchase of shares by the major shareholders of Eurasia Drilling from the minority shareholders has been approved, is reported. The shares will be purchased on November 20th.
The purchase of shares at $11.75/share will be held on the account of the loan attracted from Rosbank at the volume of $150 mln. It will be issued until the end of November 2018.
The decision on the purchase of shares from the minority shareholders was made after the failure of the deal with Schlumberger which planned to purchase 46% of the company at $22/share with an opportunity of further consolidation of up to 100%. The closing of the deal was banned by the security agencies which opposed the appearance of foreigners in the capital of the Russian company in the conditions of sanctions. They say it might do harm to the industrial and economic safety.
The minority shareholders said that they would agree with the minimal price of $17-18/share. They may file a claim to the court so as to put in question this idea.
The shareholders of the Russian largest drilling company Eurasia Drilling Company (EDC) approved repurchase of stock from the minorities at the extraordinary meeting, held on Friday. About 89% of shareholders, who took part at the meeting, voted for (76% of the total number of shareholders).
The share buyback of EDC faces the minorities.
The main shareholders of Russia's largest drilling company Eurasia Drilling Company (EDC), intending to redeem their shares but may face problems. One of the minority shareholders of EDC - UCP investment fund of Ilya Shcherbovich - does not agree with the price announced for the share buyback and called other minority shareholders not to accept the offer. As the sources of "the Kommersant" inform, in the end the major shareholders of EDC are going to sell it to a major Russian oil company, but there is a risk that UCP will challenge the buyback in courts of the Cayman Islands. At least it can delay the deal indefinitely.
Representatives of Services, Ministries and Agencies continue to assure the public that the failed deal of Schlumberger- Eurasia Drilling promises nothing bad.
There is interest from other companies, besides Schlumberger, said Mr. Artemyev October 16, 2015. But this is not Rosneft, the head of the Federal Antimonopoly Service immediately added.
Rosneft doesn’t discuss the possibility of buying the largest Russian drilling company Eurasia Drilling Company (EDC), head of Rosneft Igor Sechin said.
"We don’t discuss," - Sechin said to reporters on the margins of the VTB investment forum "Russia is calling!" in response to a question.
Russian Federal Antimonopoly Service receives Schlumberger’s notification on rejection of deal with EDCEdited by Rhod Mackenzie / 2015-10-08 08:31:22
The largest oilfield services company in the world Schlumberger has sent a request to stop the consideration of the application in respect of EDC to the Federal Antimonopoly Service of Russia, head of the Department for Control of Foreign Investments of the FAS Armen Khanyan reported.
Schlumberger is lucky that the transaction on purchase of Eurasia Drilling Company’s shares failed. Such opinion was expressed by a member of the EDC’s Board of Directors Alexander Shokhin.
"Schlumberger is lucky that the Government didn’t make the decision. The transaction was structured in different conditions - at the price of $22, and now the price fell to $8-10," - he said.