BP reaches agreement with Rosneft on TNK-BP stake -UPDATE

BP has announced the terms for the sale of its stake in the troublesome TNK-BP business to Russian state oil firm Rosneft, in what some observers have said appears to be a better-than-expected deal regarding the cash portion of the transaction.

BP has announced the terms for the sale of its stake in the troublesome TNK-BP business to Russian state oil firm Rosneft, in what some observers have said appears to be a better-than-expected deal regarding the cash portion of the transaction.

The deal itself is being done in two stages. Initially, BP will get $17.1bn in cash and shares representing 12.84% of Rosneft, for a total consideration of $26.8bn. BP then intends to use $4.8bn of this cash to purchase a further 5.66% of Rosneft from the Russian government at a price of $8 a share.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.