Cases & Deals

Sibir Energy merges with Moscow Oil and Gas Company

Clients Sibir Energy plc

Jones Day advised Sibir Energy plc in its £456 million ($922 million) merger with Moscow Oil and Gas Company (MOGC). As part of the merger Central Fuel Company (CFC), the City of Moscow-owned controlling shareholder in MOGC, subscribed for a stake in Sibir Energy by transferring to Sibir Energy all of CFC's common shares in MOGC. Sibir Energy in turn issued to CFC 69,714,254 ordinary shares in Sibir Energy, at $10.35 (£5.13), representing 18.03% of the enlarged company. CFC has an option for 18 calendar months or upon a change of control to purchase up to a further 15,492,056 ordinary Sibir Energy shares representing 3.16% of the enlarged Sibir Energy at a strike price of $10.35 (£5.13). Sibir Energy also paid $200 million in cash for CFC's preference shares in MOGC. MOGC is now a 100% owned subsidiary of Sibir Energy.