10% stake purchase in SIBUR named China’s largest investment in Russia in 2016

Silk Road Fud called its purchase of minority equity share in Russia’s major gas group SIBUR China’s largest deal of the year
10% stake purchase in SIBUR named China’s largest investment in Russia in 2016
16 December 12:49 2016 Print This Article

Silk Road Fund names its purchase of 10% equity stake in SIBUR, Russia’s major gas processing and petrochemicals group, China’s largest investment in the country in 2016. Previous transaction of a 9.9% stake in Yamal LNG totaled EUR1.08 billion.

“Silk Road Fund and PJSC SIBUR Holding, as well as its shareholders, entered into definitive transaction agreement regarding SRF’s purchase of a 10% equity stake in SIBUR… The transaction is China’s largest investment in Russia in 2016, in alignment with Russia’s Far East development strategy. It represents SRT’s new contribution to the China-Russia energy cooperation, and more broadly, the two countries comprehensive strategic cooperation partnership,” reads the SRT’s official statement.

The exact amount of the deal has non been yet disclosed by the Russian-based company, which released its official statement on Wednesday. The signing ceremony was held in Beijing on Dec. 14 and attended by Leonid Mikhelson (who owns approximately 43.08% of the company), Chairman of SIBUR’s Board of Directors, Dmitry Konov, Chairman of SIBUR’s Management Board, and Wang Yanzhi, President of the Silk Road Fund.

The stake purchase in SIBUR is SRT’s second largest investment in Russia’s gas industry in 2016. Earlier this year, the Fund bought 9.9% stake in Yamal LNG, which is building an LNG plant on the Yamal Peninsula, for 1.08 billion euros.

In Dec. last year, another China’s company – Sinopec, one of the largest petrochemical corporations globally, – closed deal on purchase of 10% stake in SIBUR. According to a head of the Federal Antimonopoly Service Igor Artemyev, the amount of the deal was 1.2 billion euros.

SIBUR is vertically-integrated gas processing and petrochemical company that operates 26 production sites in different Russian regions. The company supplies products to over 1.4 large companies operating in energy sector, automotive industry, construction sector, production of consumer goods, chemical, and other industries in 75 countries worldwide.

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