A board member of Rosneft rejected complaints about the firm's buyout deal with minority shareholders of TNK-BP Holding. On Monday, Rosneft had planned to offer USD1.5 billion to the remaining ordinary shareholders of TNK-BP Holding. The amount was based on the rate of RUB67 or USD2.07 per share and RUB55 per preferred share. TNK-BP Holding had been renamed to RN Holding.
The price was deemed small than the USD3.70 a share calculated by analysts that majority owners received from Rosneft. The offer was given at the time when Rosneft bought out TNK-BP in a USD55 billion deal. The deal resulted Rosneft and TNK-BP creating the biggest publicly-traded oil company in the world in terms of output.
Rosneft deputy chairman Andrey Kostin said, "One can always argue the price of any buyback. However, I believe the price should be defined by the market, and the market only. In this case, the price was determined on the basis of the average share price over the last 18 months."
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