06 May 2014, Tuesday, 13:28

Bashneft completed reorganization and reduced its authorized capital

author: Elvira Latypova

On May 6, Bashneft officially announced the completion of the reorganization through the consolidation of CJSC Bashneft-Invest. The same day the Moscow stock exchange resumed trading Bashneft shares  suspended on April 24.

The 38,139,925 ordinary shares of Bashneft (a 16.8% stake in its authorized share capital) owned by the company were cancelled in accordance with the resolution of the Meeting of Shareholders adopted on February 3 . 8,885,866 preferred shares bought back from Bashneft's shareholders as part of the reorganization were also cancelled.

Thus, the oil company's authorized capital was reduced to 180,358,674 roubles (150,570,662 ordinary shares and 29,788,012 preferred shares with a par value of one rouble each).

"The reorganization marked the final step in implementing a comprehensive strategy aimed at streamlining the corporate structure based on the shares of a single company, eliminating cross ownership in Bashneft and divesting the Company's non-core businesses", it is stated in the official company's release .

JSOC Bashneft  is a vertically integrated oil company operating in the regions of Russia and abroad. According to the results of 2013 it is the seventh largest oil producer (16.1 million tons) and the fourth — in terms of its primary processing ( 21.4 million tons) among oil companies in Russia. The main shareholder is Systema JSFC.