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Friday, May 29, 2009

Novatek to pay cash for Yamal LNG bite

05-27-2009 - Upstream OnLine - Russian gas player Novatek will pay for its planned $650 million acquisition of a stake in Yamal Liquefied Natural Gas in cash, its chief financial officer said, denying media reports it may make the payment in its shares. "It is a cash deal... in several tranches. The first tranche will probably be next week," said Novatek's Mark Gyetvay told Reuters, adding that the remaining sum could be raised from the debt market. Kommersant business daily quoted unnamed source on Wednesday as saying Novatek could grant $650 million worth of its shares to businessman Gennady Timchenko for his 51% stake in Yamal LNG. Earlier this week Novatek announced the acquisition of the Yamal LNG stake, which gives it exploration and development rights to the South-Tambeyskoye gas field. Meanwhile, Luxembourg-based investment fund Volga Resources is set to buy a 13.13% stake in Novatek from Cartagena Development. The deal, which is subject to regulatory approval will boost Volga's holding in Novatek to 18.2%. Novatek's management induirectly control Cartagena, Volga Resources said in a statement. The company added that its founder and largest shareholder, Guennadi Timtchenko was today elected to the Novatek board.

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