Photo: Ministry of Mining and Energy
Within the negotiations about its proposed takeover of Serbian oil refiner NIS, Hungarian MOL drew up a term sheet with Gazprom Neft, Minister of Mining and Energy Dubravka Đedović Handanović said. The Russian state-owned company holds 44.9%, while another subsidiary of Gazprom, Intelligence, owns 11.3%. In addition, Serbia secured an increase of its 29.9% share by five percentage points, and unnamed partners from the United Arab Emirates are expected to participate in the contract, according to the official.
The talks about MOL’s potential acquisition of a majority share in NIS, which operates the only refinery and largest fuel station chain in Serbia, have resulted in a term sheet for a future purchase contract, Minister of Mining and Energy Dubravka Đedović Handanović revealed today. She said the document that the Hungarian company agreed with Gazprom Neft would be sent to the United States for approval.
In addition, Serbia secured an increase of its 29.9% share by five percentage points, and unnamed “partners from the United Arab Emirates” are expected to participate in the contract, according to the minister. Negotiations about the details are continuing, Đedović Handanović added.
Importantly, MOL has committed to maintaining the earlier level of production in the refinery and increasing it in case it needs to preserve its market share, the minister stressed.
US deadline for acquisition deal is March 24
NIS, also known as Naftna industrija Srbije, is under US sanctions because of Russian ownership. The company requires a green light from the Office of Foreign Assets Control (OFAC) of the Department of the Treasury to be able to operate regularly.
Amid the takeover talks, the administration of President Donald Trump issued a waiver three weeks ago, valid through January 23. Separately, the US has allowed NIS to find a buyer by March 24 at the latest.
Gazprom Neft holds 44.9%, while Intelligence, another subsidiary of Russian state-owned Gazprom, owns 11.3% of NIS. The said increase in the stake that Serbia holds will make sure that the government participates in certain decisions, the ones requiring a two-third majority.
Unclear status of Abu Dhabi’s ADNOC, unknown fund from UAE
Serbian officials earlier mentioned Abu Dhabi National Oil Co. (ADNOC) as a potential buyer. There has also been speculation about a fund of an unspecified type from the United Arab Emirates that was interested in the investment. ADNOC, fully owned by the Emirate of Abu Dhabi, has a 24.9% stake in Austria-based OMV.
Hungary indirectly holds a majority stake in MOL. Of note, OTP banka Srbija, the subsidiary of Hungarian OTP Bank in Serbia, has 1.7% of NIS. The government in Budapest controls just a marginal stake in the lender.
Be the first one to comment on this article.