Surgut plans no hostile takeover of Hungary's MOL - EcoMin

http://www.portfolio.hu/en/cikkek.td...

Thursday, April 23, 2009 11:36:00 AM

Russian Energy Minister Sergei Shmatko told the press yesterday that Surgutneftegas is not planning a hostile takeover of Hungarian energy group MOL after buying a 21.2% stake from OMV.

Shmatko denied media speculation that Surgut had bought the MOL package at a large premium (for EUR 1.4 bn) on Kremlin orders to fight Hungary's plans to take part in the European Union-backed Nabucco pipeline that should ease energy dependence on Russia. The project, which has stalled as it lacks enough gas to justify costly construction, is a rival to South Stream, a new gas pipeline to go from Central Asia and the Caspian to southern Europe.

"No-one is planning hostile takeovers ... By buying 21% of the company, Surgut won't be able to fight the plans of MOL to co-operate with Nabucco," Reuters cited Shmatko as saying.

He added Surgut paid a premium because it badly needs refining assets.

He also said Nabucco was poised to sell gas to Europe at a higher price than Russia due to its poor resource base and longer pipeline routes.

In the meantime, Surgut issued an public letter for MOL shareholders, in which it reconfirms its ongoing willingness to establish a dialogue with the MOL's management.

2009.04.22 23:59
Letter to MOL shareholders

Surgut was denied entry to MOL's annual general meeting today, as it failed to report the acquisition of its stake in the fuels group to the Hungarian Energy Office (MEH) which has not yet registered Surgut as a shareholder of MOL.

The AGM was convened for 11:00 CET today but as it lacked quorum the meeting will start at noon.

2009.04.22 16:39
Hungary´s MOL to shut the door on Surgut at AGM

“We guess MOL is pretty undecided what could be the area of potential cooperation with Surgut, a highly politicized Russian upstream company with no downstream experience," commented Péter Tordai, analyst at KBC Securities.

He maintains his view that Surgut is unlikely to remain the ultimate shareholder of the MOL stake.

“Despite the recent declaration of Gazprom that it was not interested in acquiring MOL, we believe Lukoil and Gazprom might be attracted the most. It also seems to us that none of the major Russian companies want to express interest on the MOL stake openly, after it became obvious that Surgut highly overpaid for a minority stake and the Hungarian politics clearly expressed its readiness to defend MOL's independence, whatever it costs," he added.

With the planned amendments to MOL's Article of Association at today's AGM Tordai believes the chances of Surgut (or any other company behind) to take over MOL are “practically zero."