03 July 2013, Wednesday, 12:15

Bashneft completed the consolidation of petrochemical assets within UPC

author: Elvira Latypova

The consolidation of petrochemical assets within OJSC United Petrochemical Company (UPC) is completed, it is said in the company’s official report.

As part of the consolidation which had started in February 2013, UPC acquired 100% stakes in LLC Tuimazinskoye Gas Processing Plant and LLC Shkapovskoye Gas Processing Plant from Bashneft and founded LLC Bisphenol. Subsequently, LLC Tuimazinskoye Gas Processing Plant and LLC Shkapovskoye Gas Processing Plant signed agreements on acquiring property, plant and equipment previously leased from Bashneft, and LLC Bisphenol acquired a bisphenol A production unit from Bashneft.

Besides, as part of the consolidation of petrochemical assets, OJSC UPC issued 10,166,000 additional ordinary shares worth a total amount of 10.166 billion roubles. In the course of placement of UPC’s additional share issue, Bashneft exercised its pre-emptive right and purchased UPC’s securities in exchange for cash and securities of OJSC Ufaorgsintez, Bashneft’s subsidiary. As a result of the transaction, OJSC UPC acquired 65.3% of ordinary shares (a 56.5% stake in the authorized share capital) of OJSC Ufaorgsintez, while Bashneft retained its stake (98%) in the authorized share capital of UPC.

The consolidation of Bashneft’s petrochemical assets within United Petrochemical Company is aimed at developing petrochemical production as a separate business.