Negotiations finalised: Stake in Rosneft held by Glencore-QIA Consortium

Glencore refers to the announcement on 8 September 2017 in which it announced that the Consortium had concluded an agreement with CEFC China Energy Company Limited (CEFC) for the disposal by the Consortium of a 14.16% stake in Rosneft Oil Company (Rosneft).

The Consortium has finalised negotiations with CEFC and elected to proceed with the transaction.

The consideration for the disposal of the 14.16% stake amounts to:

(1) 3,905,850,665 Euros; plus

(2) the amount of Euros arising from the conversion of USD4,576,094,639 at a five day average exchange rate at the date of payment.

The consideration will be principally applied towards paying down the non-recourse bank financing provided at the time of the original acquisition in December 2016, principally by Intesa Sanpaolo S.p.A., and certain Russian banks. Following completion of the transaction, the margin guarantees provided by Glencore will terminate.

Glencore and QIA will each retain an economic interest in Rosneft shares commensurate with its original equity investment announced in December 2016, which amounts to approximately 0.5% and 4.8% respectively.

The transaction continues to be conditional upon receipt by CEFC of all necessary regulatory approvals.

Source: Glencore

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