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MOSCOW, Oct 4 (Reuters) - Rosneft's buyout ofminority shareholders in TNK-BP Holding is in linewith the law and good corporate governance practice, a boardmember of the energy giant said On Friday, rejecting complaintsthat the price is not high enough.
Rosneft said on Monday it planned to buy out the remainingholders of ordinary shares in TNK-BP Holding for about $1.5billion, at a rate of 67 roubles ($2.07) per share and 55roubles per preferred share.
That was a fraction of the $3.70 a share analysts calculatedthat the majority owners received at the time of the $55 billiontakeover of TNK-BP, in a worrying development for minorityshareholders in Russian companies.
Shares in TNK-BP Holding, now renamed RN Holding, weretrading up 0.47 percent at 63.50 roubles on Friday.
"One can always argue the price of any buyback," said AndreyKostin, Rosneft's deputy chairman. "However, I believe the priceshould be defined by the market, and the market only. In thiscase, the price was determined on the basis of the average shareprice over the last 18 months."
Rosneft bought the TNK-BP holding company and its parent ina deal which closed earlier this year, creating the world'slargest publicly traded oil company by output. Minorityshareholders were left with about 5 percent.
Kostin, who is also CEO at Russia's second largest bankVTB, said Rosneft does not have any legal obligations to buy outthe minority shareholders but was doing it voluntarily inresponse to demands from shareholders.
The buyback was in full compliance with both Russian andinternational legislation and in line with best internationalpractice in corporate governance, he said.
"There will always be someone who is dissatisfied," saidKostin, who owns 111,876 Rosneft shares according to the oilcompany's website.
Sources close to the minority shareholders have told Reutersthat they think Rosneft should pay them $2.8 billion, based onwhat it paid for its majority stake in TNK-BP.
Rosneft's powerful president, Igor Sechin, has already saidthe company has no obligation to buy the remaining shares andthat the company is not a "charity fund".
But he changed his tone last week saying that the companywould consider buying the shares at a 20 to 30 percent premiumto the market price.
Sechin was quoted by Russian agency Interfax on Thursday assaying the offer to minority shareholders was final.
