LUKOIL OVERSEAS HOLDING LIMITED, LUKOIL Overseas Holding Limited «for cash at a price of 1.55 Canadian dollars per share.
Bitek is a Canadian oil exploration and production company, the main production of which is located in the Russian Federation in the Komi Republic. According to this proposal, the share capital of “Baitek”, taking into account all existing options, is estimated at approximately 123 million Canadian dollars.
The premium is 99% of the closing price of the Toronto Stock Exchange, which was 0.78 Canadian dollars per share as of July 16, 2001. The Board of Directors of “Baitek” unanimously spoke in favor of recommending the company’s shareholders to accept this offer. The directors and management of “Baitek” have undertaken to offer to purchase all their ordinary shares and options, which amounts to 3.33% of all issued ordinary shares.
In addition, some other major shareholders have pledged to offer their ordinary shares for sale, representing another 39.16% of the issued ordinary shares. The transaction is financed by LUKOIL Overseas at its own expense. It is expected that the appeal regarding this transaction will soon be sent to the shareholders of «Baytek». This offer expires 35 days after the referral is submitted, unless it is renewed by LUKOIL Overseas.
“The acquisition of Baiteka is in line with LUKOIL’s strategy to consolidate its positions in a number of major regions of the company’s operations in Russia and expand its operations outside Russia and the CIS, especially in North Africa and the Middle East,” said LUKOIL President Vagit Alekperov.
Baytek’s assets in the Komi Republic are an important addition to the projects of LUKOIL in the Timan-Pechora oil and gas province. In addition, the acquisition of Vanguard’s Bitec company, which has good hydrocarbon exploration projects in Egypt, Libya, Morocco, Tunisia and Colombia, and the acquisition of a license on Sakhalin will potentially provide LUKOIL Overseas with a basis for future expansion.
Commenting on the deal, President of LUKOIL Overseas Andrei Kuzyaev said: “The acquisition of the Baitek is another important step towards strengthening LUKOIL’s leading positions in the Timan-Pechora oil basin and demonstrates LUKOIL’s commitment to developing oil and gas reserves in this region The most recent new project in this direction was the acquisition by LUKOIL-Perm of a controlling stake in Parma-Oil.
In addition, the acquisition of Baytek is a contribution to the achievement of LUKOIL Overseas’s goal of implementing major exploration and production projects outside Russia in the future. ”In turn, the President and Chief Executive Officer of Baytek, Nicholas Gay, said:“ This deal which in the western capital markets is a usual corporate acquisition, in the future it may very well be considered as a kind of milestone in the development of the oil business in Russia.
Despite the fact that today’s sale is a “end of an era” for “Baitek”, we are confident that our efforts have created a new valuable addition to the LUKOIL business both in Russia and abroad ”