Unknown Serbian group bids $2.35 billion for stake in Russian-owned oil firm NIS
Serbian Company Challenges Hungarian Bid for NIS Amid Sanctions
Details of the Serbian Bid
BELGRADE, May 6 (Reuters) - A recently formed Serbian company has offered 2 billion euros ($2.35 billion) to Russia's Gazprom Neft and Gazprom for their combined 56.1% stake in NIS, which operates Serbia's only oil refinery, its owner Ranko Mimovic said, adding that the bid had been "generally accepted" by the Russian owners of NIS.
The bid by KFT Senator Treasury G.T.7 Two LLC (Senator), which was founded last summer, represents a challenge to Hungary's MOL, which is trying to buy a majority stake in NIS, which has been under U.S. sanctions since October last year.
Impact of U.S. Sanctions and Regulatory Actions
Sanctions on NIS and Russian Owners
The U.S. Treasury's Office of Foreign Assets Control imposed sanctions on NIS as part of wider measures targeting Russia's energy sector over the war in Ukraine. It demanded the divestment of the NIS shares owned by Gazprom Neft and Gazprom, its Russian majority owners.
Gazprom Neft's Position and Ongoing Negotiations
Gazprom Neft said it was readying its stake sale in NIS to the Hungarian firm. "Gazprom Neft is actively preparing to sell its stake in NIS to the Hungarian company MOL. The necessary corporate and regulatory procedures are currently underway. The company is not conducting any other negotiations on this matter," it said in an emailed statement.
Gazprom and NIS did not immediately reply to emailed inquiries from Reuters.
Senator's Acquisition Efforts and Regulatory Proceedings
OFAC License Application
Senator said it began proceedings before OFAC on October 30 to secure a license for the acquisition of a majority stake in NIS, and it informed Gazprom Neft about its plans on November 4. OFAC's website shows the request is "pending management review."
Ownership Structure of NIS
Gazprom holds an 11.3% stake in NIS, while Gazprom Neft owns 44.9%. The Serbian government owns 29.9%, with the remainder held by small shareholders and employees.
Hungarian MOL's Agreement and Serbian Government's Interest
MOL's Stake Purchase Agreement
MOL signed an agreement on January 19 to buy the combined Gazprom Neft and Gazprom stake in NIS. OFAC gave the Russian companies until May 22 to complete the sale. Serbia also wants to increase its stake by an additional 5%.
Serbian Presidential Office and Public Statements
Communication with President Vucic's Office
Mimovic also said he informed the office of Serbia’s President Aleksandar Vucic about his plans on April 21. Vucic's office did not reply to a request for comment from Reuters.
President Vucic's Comments on MOL's Offer
Vucic said on January 26 that MOL was ready to pay 1 billion euros for a majority NIS stake.
Additional Information
($1 = 0.8503 euros)
(Reporting by Aleksandar Vasovic; Editing by Alexander Smith and Sanjeev Miglani)
