MOSCOW Oct 18 Russian private investment group
United Capital Partners (UCP), which agreed to buy a stake in
India's Essar Oil, plans to keep a stake in the company for the
next 3-5 years, UCP representative Irina Lanina told Reuters.
UCP and its partner Trafigura signed an agreement on
Saturday to buy a 49 percent stake in Essar Oil, which includes
a 400,000 barrels per day (bpd) refinery, import and export
facilities, and gas stations.
In written replies to Reuters questions, Lanina said that
UCP is sticking to long-term strategy regarding its stake in
Essar Oil but "everything depends on the market situation and
the asset's valuation."
"We plan to make this investment in a consortium with our
partner Trafigura and are likely to exit together with them as
well. As of now, we are looking at (remaining in Essar) for 3-5
years but time will show," Lanina said.
Russian state oil company Rosneft will get a 49
percent stake in Essar Oil in the deal, which was structured to
mitigate western sanctions and was valued at $12.9 billion. It
gives the energy giant a gateway into the world's fastest
growing fuel market.
Lanina said that UCP plans to use its own funds and credit
facilities to finance the acquisition of its stake but did not
say how much it would cost.
Under the agreement, the 49 percent stake is equally split
between Trafigura and UCP. The billionaire Ruia brothers own the
remaining 2 pct stake.
Lanina added that UCP has no agreements to sell its stake to
Rosneft or other shareholders at the moment. "We do not plan to
sell our stake to anyone in the near future," she said.
(additional reporting by Oksana Kobzeva in MOSCOW and Nidhi
Verma in NEW DELHI; editing by Christian Lowe)