The Rosneft board of directors set the market value of the company's shares, each with a face value of 1 ruble, at an April 17 meeting.
Company documents prepared for an extraordinary shareholders' meeting scheduled for June 2, 2006 state that shareholders may send a written offer to repurchase their shares until July 18, 2006. After this deadline, Rosneft will buy out shares from the selling shareholders within 30 days until August 17, 2006.
The shareholders' meeting is expected to discuss reorganization of Rosneft through the consolidation of its subsidiaries. The consolidation program was drafted by leading Russian and foreign consultants, including ABN Amro, Dresdner Kleinwort Wasserstein, Morgan Stanley and JP Morgan.
International consulting company Deloitte & Touche has worked out a scheme of share conversion pursuant to Russian legislation that protects the interests of all shareholders, the company said.
The Rosneft board of directors approved the consultants' proposals and the consolidation schedule.
Under the consolidation plan, Rosneft, Russia's second largest crude producer, will consolidate the assets of its 12 subsidiaries in Russia.
In the process of reorganization, Rosneft will offer minority shareholders of its subsidiaries to convert their shares into the stock of a consolidated company or sell them pursuant to Russian legislation.
On June 2, the shareholders of Rosneft and its subsidiaries will hold a general meeting to make changes to the Rosneft Articles of Association due to the company's consolidation.
Rosneft has a charter capital of 90.92 million rubles (about $3.3 million). The company has Ordinary shares with a face value of 1 ruble each.
