QIA fund becomes strategic partner of ROSNEFT

HomeBusiness News Qatari fund becomes strategic partner of Russia’s Rosneft Published time: 7 May, 2018 11:47 Get short URL Qatari fund becomes strategic partner of Russia’s Rosneft Buildings are seen on a coast line in Doha, Qatar © Naseem Zeitoon / Reuters An agreement which provides for the acquisition of an 18.93 percent stake in Russian oil giant Rosneft by Qatar sovereign fund (QIA) is strategic, according to company spokesman Mikhail Leontyev. He told RIA Novosti that QIA will become a major shareholder in Rosneft, along with the British oil company BP. Under the deal which was announced Friday, QIA will own 18.93 percent of Rosneft, becoming the third-largest shareholder after the Russian state, which holds 50 percent and, BP with 19.75 percent. “A very strategically important deal took place... Qatar, represented by the QIA fund, becomes the direct shareholder and strategic partner for Rosneft,” Leontyev said, adding that the Russian company is satisfied with the decision. Read more © Nikolay KorchekovRussia targets strategic Chinese energy market “This is a completely different level of relations and cooperation. The market will see a range of bilateral international projects that we are going to develop together…” He explained that from the investment point of view, QIA is a very good partner with “obvious resources.” In 2016, the consortium of QIA and the Swiss commodity trader Glencore bought a 19.5 percent stake in Rosneft. Later, they announced the sale of 14.16 percent of the shares in that stake to the Chinese energy company CEFC. The value of the transaction was estimated at $9.1 billion. On Friday, the agreement with CEFC has been terminated, with the stake intended for sale to the Chinese firm to be transferred to a subsidiary of QIA. The companies have also announced dissolving the consortium. Glencore will receive €3.7 billion as a result of the transaction and keep the 0.57 percent stake in Rosneft. According to Leontyev, Glencore has successfully completed its participation in the transaction and, as a trader, it has other tasks.

SNC-Lavalin settles shareholder class actions in Ontario and Quebec, to pay $88M

SNC Lavalin offices in Montreal The offices of SNC Lavalin are seen Monday, March 26, 2012 in Montreal. (THE CANADIAN PRESS / Ryan Remiorz) The Canadian Press Published Tuesday, May 22, 2018 11:41AM EDT MONTREAL - SNC-Lavalin Group Inc. says it has agreed to settle two class action lawsuits filed on behalf of shareholders in 2012 over allegations of misleading investors about its activities in Libya. The company says it will contribute $88 million to the settlement of the cases in Ontario and Quebec. The agreement is subject to court approval. The lawsuits were among the consequences of alleged payments made by SNC-Lavalin to members, associates and agents of the Gadhafi regime to secure contracts for infrastructure projects in Libya. The law suits were filed on behalf of SNC shareholders after its shares plunged in 2012 after the company announced an investigation into millions in undocumented payments and said its 2011 earnings would be less than expected. The company says it has since initiated a series of significant changes and enhancements to reinforce its ethics and compliance procedures.

MIDEAST STOCKS-Qatar outperforms on hopes MSCI may boost weightings of bluechips

Reuters Staff 4 MIN READ * Qatar National Bank, Industries Qatar surge * Retail flows increase in Saudi ahead of MSCI decision * Emaar supports Dubai shares * Etisalat’s 2 pct gain lifts Abu Dhabi By Saeed Azhar DUBAI, May 14 (Reuters) - Qatar stocks rose more than one percent on Monday, leading among Gulf markets, as investors bet that index-compiler MSCI will increase weightings for some of the country’s top blue-chip companies in its emerging market index review. Banking stocks drove Saudi shares higher as investors also hoped MSCI will upgrade Riyadh next month to emerging market status, following FTSE Russell’s similar decision in March. Qatari stocks ended the day 1.3 percent higher, fuelled by 3.4 percent gains in Qatar National Bank and a 2.7 percent rise in Industries Qatar. The two market heavyweights are among Qatari companies which have raised their foreign ownership limits to 49 percent from 25 percent, in an attempt to boost the weight of their stocks in emerging market indexes. The results of MSCI’s semi-annual index review will be announced late on Monday and the changes will take effect at the end of this month. The Saudi index closed 0.6 percent higher at 8,071 points, with Al Rajhi Bank - the kingdom’s second largest bank by assets and one of the main beneficiaries of a huge inflow of foreign money this year - up 1.3 percent. Samba Financial Group gained 1.7 percent. “We expect Saudi to do well in the run up to the MSCI announcement – the index closing above the 8000 mark is a healthy sign and we see retail as well as the opportunistic foreign investors to come in,” said Vrajesh Bhandari, a portfolio manager at Dubai-based Al Mal Capital. “Banks reported good set of numbers. Going forward, we expect the sector to witness better loan growth post summer as well, benefiting from the substantial base of non-interest bearing deposits in this context of higher interest rates.” In Abu Dhabi, telecommunications firm Etisalat rose 2.2 percent, helping the stock index to close 0.5 percent higher. Investors saw a bargain in the stock after it lagged the index this year on concerns over earnings growth. It reported a flat first quarter net profit last month amid higher expenses and impairments. The stock is still down 6.6 percent so far this year. Dana Gas dropped 2.8 percent, giving up much of its gains a day earlier when it surged 3.9 percent after announcing that it had struck a deal with creditors on restructuring $700 million of sukuk. This will possibly bring to an end a nearly year-long legal row that spooked investors in Islamic finance. In Dubai, the index closed 0.5 percent up, helped by Emaar Properties which rose 1.2 percent. Larger gains were prevented by profit-taking in lender Emirates NBD which closed almost 2 percent lower. Despite Monday’s losses, Emirates NBD is up 22 percent so far this year, outperforming a weak stock market that has been weighed down by property stocks. SAUDI ARABIA * The index rose 0.6 percent to 8,071 points. DUBAI * The index rose 0.5 percent to 2,905 points. ABU DHABI * The index rose 0.5 percent to 4,447 points. QATAR * The index climbed 1.3 percent to 8,934 points. KUWAIT * The index fell 0.5 percent to 4,765 points. BAHRAIN * The index was flat at 1,272 points. OMAN * The index was flat at 4,690 points. EGYPT * The index fell 1.2 percent to 16,984 points. (editing by David Stamp)