NEWS
Gazprom may make soccer billionaire richer London, Aug 18 (LNG journal)
- Gazprom, which plans to become one of the world's leading liquefied natural gas players , is reportedly planning to spend $10 billion to buy the Russian oil company Sibneft, owned by billionaire Roman Abramovich and his partners.
Sibneft's American Depository Receipts (ADR) traded in London rose as high as $18 in order-book trades on Thursday and were last at $17.85, still below their 52-week high of $19.25. Gazprom's ADRs were slightly weaker at $45.60.
Russian President Vladimir Putin has been tightening his grip on Russia 's energy industry. Oil and gas in Russia are still mired in political uncertainty as owners of privately held companies bought cheaply after the fall of the Soviet Union remain wary of facing the same fate as energy giant Yukos that was floored by a tax demand for $28 billion.
Abramovich, aged 38, now lives in London and is best known in the UK as owner of soccer team Chelsea FC, the English champions.
He was named by Forbes magazine as the world's 21st richest man with $13.3 billion in assets. Gazprom's takeover of Sibneft would turn much of Abramovich's listed assets into cash, depending on the terms.
Abramovich is estimated by Forbes to have spent $700 million on expensive playthings in the past few years such as his yacht, Pelorus, and Chelsea FC.
The Russian made his fortune in a series of controversial oil-export deals in the early 1990s. He moved into the millionaire league in 1995 when he teamed up with Boris Berezovsky to take over Sibneft at a fraction of its market value.
When Berezovsky fled Russia in 2000 to escape fraud charges, he sold out to Abramovich. Abramovich's London-registered company, Millhouse Capital, also has holdings in pharmaceuticals and heavy industry.
Gazprom is seeking to increase its involvement in the oil sector after the Russian government raised its stake to become majority owner in June, when state oil company Rosneft bought a further 10.5 percent of Gazprom.
Abramovich and his partners control around 70 percent of Sibneft, which is the fifth-largest oil producer in Russia . Another 20 percent of Sibneft is held by Yukos and was frozen by a court in July as part of the Yukos dispute with the state.
Gazprom share surge puts value over $100Bln
