News

07.06.2017

Following Rosneft privatization

After successful completion of Rosneft privatization the company has demonstrated rapid growth of capitalization at the beginning of 2017 exceeding $73 billion which is fully consistent with Fund Energy forecast made in November 2016 when Fund Energy expressed confidence that Rosneft capitalization will achieve $80-100 billion in the period of 2017-2018.

Rosneft stock has become the most attractive to investors due to highly efficient operation of the company's management, its growth prospects and high dividend compared to other companies.

As previously suggested by Fund Energy, the company may consider the possibility to implement the procedure of buy-back and to redeem all or any part of its shares implemented earlier within the framework of privatization taking into account the expected company’s capitalization growth.

In future the company can sell some of these shares on the Russian stock exchange as a public offering, other part can be offered to foreign investors under the asset exchange scheme and the remaining part may be structured in the form of optional management programmes as the system of long-term motivation and stimulation being an additional effective tool aimed at company’s capitalization growth as well as its successful development.