18 December 2003 15:00
Citigroup appointed to advise Sibneft on exit from Yukos merger
Citigroup is to advise Millhouse Capital, a core shareholder in Sibneft, on how to exit the aborted $22bn merger with
Yukos. Millhouse is an investment company controlled by Roman Abramovich, owner of the UK's Chelsea football
club.Citgroup provided a fairness opinion to Millhouse in April when Russian oil groups Yukos and Sibneft announced
their merger. It formally completed in October but is now being scrapped following the arrest on charges of tax evasion
of Mikhail Khodorkovsky, the chief executive of Yukos and its core shareholder.
A statement from Sibneft confirmed the appointment: "Millhouse has agreed in principle with the core
shareholders of Yukos to de-merge Sibneft from Yukos. As a result of this transaction, the 92% equity interest in
Sibneft presently held by Yukos will be returned to its original core shareholders. As part of Citigroup's
engagement, Millhouse Capital intends to ask Citigroup to advise it on how best to ensure that all Sibneft shareholders
are treated fairly"
It is understood that Millhouse will pay $3bn in cash for the return for the 92% stake, although the precise manner
in which the deal will be reversed has yet to be confirmed.
Lehman Brothers, UBS and Trust Investment Bank advised Yukos on the original transaction but were unable to confirm
whether they will be involved in the demerger.
[UKIR [UK & Ireland Intelligence Wire]] |
RUSSIA IN FACTS
