Nayara Energy Unlisted Shares
Rosneft exploring exit from Nayara Energy amid sanctions
Money Control
2 min read
Rosneft May Exit Nayara Energy Due to Sanctions.
Expert Analysis :
Rosneft’s Potential Exit: Rosneft is reportedly considering selling its 49.13% stake in Nayara Energy, acquired in 2017 for $12.9 billion, amid sanctions.
Sanctions & Valuation Impact: Rosneft, facing US and EU sanctions since 2014, struggles to repatriate earnings from Nayara Energy. Talks with Indian firms value the unit at over $20 billion, but deal complexities pose challenges.
UCP’s Stake Sale & Ownership Structure: UCP Investment Group is exploring the sale of its 24.5% stake in Nayara Energy, valued at over $5 billion. Currently, Rosneft holds 49.13%, while Trafigura and UCP own 24.5% each, with the rest held by retail shareholders.
Potential Buyers & Discussions: Rosneft and UCP have held talks with Reliance, Adani, and JSW, with Rosneft executives visiting Delhi in March. Saudi Aramco, committed to $100 billion in investments in India, is also exploring opportunities in the refining sector.
Deal Challenges & Nayara’s Market Presence: Some Indian firms hesitate due to low returns, capital requirements, and sanctions risks. Nayara Energy operates India’s second-largest refinery and 6,500+ fuel outlets, making it the largest private fuel retailer.
Aramco’s India Strategy & Responses: Aramco, previously committed to the West Coast refinery project, is now in talks with ONGC and BPCL for refinery partnerships. Rosneft, Reliance, Adani, UCP, JSW, and Aramco declined to comment.
Rosneft and UCP may exit Nayara Energy, but buyer concerns over returns and sanctions complicate a $25 billion+ potential transaction.
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