Moscow, 29 October 2001; Sibneft today provided further details of the transactions involved in the sale of a 27% stake in the company.
Sibneft earned a profit of $26 million on the sale of the shares, equivalent to a gain of 9.3% on an annualized basis. The company acquired the shares in a series of transactions concluded on 28 December 2000 for a total consideration of $542 million, which is equivalent to an average price of approximately $0.41 per share.
The shares were sold in a series of transactions on 4 and 11 July 2001 for a total of $568 million, equivalent to an average price of approximately $0.44 per share. These transactions will be fully reflected in the company's full-year GAAP accounts.
"The transactions involved in the sale of a 27% stake in the company generated value for all our shareholders," Sibneft president Eugene Shvidler said. "Sibneft has made a commitment not to enter into transactions which harm the interests of our minority shareholders, and we will stick to that commitment."
"Sibneft is mindful of the responsibilities to shareholders entailed by its status as a public company and we will remain responsive to the concerns and criticisms of investors. Sibneft has much to gain from a free and frank dialogue with the investment community."
"Sibneft's successful consolidation and record levels of investment, which have led to big increases in both production and profits, are evidence of this company's commitment to build shareholder value. And our decision to make the largest dividend payment in Russian corporate history testifies to our commitment to share that value with all our shareholders. All we ask of investors is that they judge this company by its track record."