YUKOS: We offered options to gov’t

YUKOS CEO Steven Theede said the preliminary analysis of Dresdner Kleinwort Wasserstein’s report shows that there are many different scenarios for the valuation of OAO Yuganskneftegaz, YUKOS’s key production subsidiary, while a government official announced a value of $10.4bn.
According to the YUKOS press service, Mr. Theede issued his statement in connection with the valuation of Yuganskneftegaz by Dresdner Kleinwort Wasserstein, an investment bank. Mr. Theede said the YUKOS management had received the bank’s report, but it would refrain from further comments until it examined the report in detail.
Commenting on the government’s plans to sell Yuganskneftegaz to cover YUKOS’s tax debts, YUKOS said the Russian law “On enforcement proceedings” ruled out the sale of the debtor’s core production assets to pay off tax claims if there were other alternative options to settle the debt. For YUKOS, Yuganskneftegaz is undoubtedly a core business asset.
“We informed the government about all those alternative options. Each of them would allow YUKOS to continue its activity as one of the world’s largest and most effective companies working in the interests of the Russian Federation, its employees and shareholders,” the company said in a press release.
Dresdner Kleinwort Wasserstein valued Yuganskneftegaz between $15.7bn and $18.3bn, taking into consideration the company’s net debt of $2.9bn and its potential tax liabilities. The value of Yuganskneftegaz “as a separate company” was put between $18.6bn and $21.1bn.
Earlier, the Justice Ministry said DrKW valued the company at $10.4bn. But it turned out later that $10.4bn was an “overly conservative” valuation. Sources who read the report, said it was the most pessimistic valuation that could be applied if YUKOS lost its oilfield licenses.
Quoting its sources in the government, Echo of Moscow radio said a stake in Yuganskneftegaz could be auctioned by the end of November. According to the radio station, nearly 77 percent of Yuganskneftegaz shares will be put up for sale. The starting price will be based on the valuation of $10.4bn, with a significant discount. In other words, the starting price will be a bit higher than $4bn. The Russian Federal Property Fund neither denied nor confirmed this information.
Citing its source in the government, the Kommersant newspaper says the most likely buyer is a company affiliated with Gazprom.

(From RBC)