Rosneft to save $1.4 billion in TNK-BP purchase
In its last quarterly profits report from 2012, BP announced it would receive $11.6 billion (instead of the originally announced $12.3 billion) from its sale of TNK-BP to Russian oil major Rosneft in one of the largest share-swap deals of the century. BP explained the move as resulting from $709 million in dividends it had received from TNK-BP that won’t be used before the deal is complete.
The deal foresees BP acquiring 12.84% of Russia’s largest oil company and $17.1 billion for its share of TNK-BP, $4.8 billion of which it will pay for another 5.66% of Rosneft. Therefore Rosneft will owe BP a total of $16.4 billion.
This is positive news for the Russian oil major; its debts will be lower than originally predicted, noted Investkafe analyst Yulia Voitovich.