Last updated on April 24, 2014 at 1:21 EDT

AAR to sell its 50% interest in TNK-BP to Rosneft

October 22, 2012

MOSCOW, Oct. 22, 2012 /PRNewswire/ — AAR announces that it has signed Heads of Terms (Memorandum of Understanding) to sell its 50% interest in TNK-BP Ltd. to Rosneft for an aggregate price of US$28 billion in cash.

BP has provided a waiver of its right to hold good faith negotiations with AAR over a 90-day period as stipulated by the TNK-BP Shareholder Agreement. The transaction is subject to finalization of a share purchase agreement and other customary closing conditions.

Chief Executive Officer of AAR Stan Polovets said: “We welcome the agreement to sell our interest in TNK-BP to Rosneft, Russia’s leading oil producer. This deal provides a clear and transparent exit path for the AAR shareholders at a fair market price that reflects the extraordinary achievements of TNK-BP over the past decade. TNK-BP has been a remarkably successful investment for AAR, and one of the extraordinary success stories of the Russian oil industry. I am confident that Rosneft stands to benefit from adding these high-quality assets to its portfolio.”

Information on the parties

About Alfa:
Founded in 1989, Alfa Group Consortium is one of Russia’s largest privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities, as well as special-situation investments. The Group typically focuses on value-oriented, longer-term opportunities, primarily in Russia and the CIS, but also invests in other markets which form part of the Group’s strategic business objectives.

About Access Industries:
Access Industries is a privately held, global industrial group with long-term holdings worldwide. Founded by industrialist Len Blavatnik, Access’ focus spans three key sectors: natural resources and chemicals; telecommunications and media; and real estate.

About Renova:
Renova Group is a leading Russian private business group that holds and manages assets in metallurgy, oil, mining, chemical industry, real estate development, energy, telecommunications, high-tech engineering, transport industry, utilities and financial sectors in Russia as well as CIS, Switzerland, Italy, South Africa and the United States. Among the Group’s most important assets are investments in TNK-BP, UC RUSAL, IES, as well as in Swiss high-tech and industrial companies OC Oerlikon and Sulzer.

SOURCE Alfa, Access, Renova (AAR)

Source: PR Newswire