17 september Bashneft sold its 98% stake in the authorized share capital of OJSC United Petrochemical Company (UPC) to OJSC JSFC Sistema. The transaction forms part of Bashneft’s strategy for divesting the Group’s non-core assets.
The transaction value totalling 6.2 billion roubles was determined based on independent appraisal made by one of the Big Four audit firms.
On August 26, 2013, the transaction was approved by the Extraordinary Meeting of Shareholders of Bashneft; as part of establishing long-term market relations between Bashneft and UPC, the Meeting of Shareholders also approved the contract for selling up to 1.1 million tonnes of Bashneft’s petrochemicals to OJSC Ufaorgsintez, which forms part of UPC, before December 31, 2014.
The selling price for petrochemicals will be calculated in accordance with the approved pricing formula based on current market indicators.