Trafigura plans to exit Rosneft Indian refining JV -sources

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NEW DELHI / SINGAPORE – Trafigura to sell its indirect 24.5% stake in an Indian oil refining joint venture with Russian Rosneft to an Italian group, according to a letter seen by Reuters and people familiar with the plans of the commodity trading company.

Trafigura owns a stake in Nayara Energy, which owns India’s third largest refinery, a port and a network of over 6,000 service stations in India, indirectly through a 49.84% stake in Tendril Ventures Pte Ltd, based in Singapore.


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He plans to sell Nayara’s stake to Italian Genera Group Holding SPA, people familiar with the matter said, without giving details of what prompted Trafigura to sell.

“We have been informed that Trafigura is offering to sell its stake in Tendril to a third party; being Genera Group Holding SPA, ”Nayara Managing Director Alois Virag wrote in a letter to his lenders earlier this month.

Trafigura declined to comment. Genera did not respond to Reuters emails and messages seeking comment. Nayara said he could not comment on the actions of his shareholders.

It is not known how much Trafigura’s stake in Nayara, formerly known as Essar Oil, is worth.

Nayara, which owns Vadinar’s 400,000 barrels per day (bpd) refinery in Gujarat state in western India, changed hands for nearly $ 13 billion in 2017, so the stake de Trafigura would have been worth more than 3 billion dollars.


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The other owner of Tendril is Russian investment group United Capital Partners (UCP), which also owns 49.84%.

Tendril’s wholly-owned subsidiary, Kesani, registered in Cyprus, has a 49.13% stake in Nayara Energy. Rosneft’s unit in Singapore also holds a 49.13% stake and public shareholders the remainder.

When Kesani and Rosneft bought Nayara’s stakes in 2017, the sale was structured to prevent Rosneft from acquiring a controlling stake and avoid facing US sanctions / us-essar-oil -ma-rosneft-oil-idUSKBN12G0X3 on the Russian oil major.

“Following the proposed transfer, Trafigura will cease to hold an indirect stake in Kesani and therefore also in the borrower (Nayara),” Virag said in the letter viewed by Reuters.


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After the transfer, Genera will own a 24.5% stake in Nayara, via Tendril and Kesani, according to the letter.

Tendril, which shares its official address with Trafigura in Singapore, could not be reached by Reuters for comment.

Nayara Energy wrote to its local and global lenders including State Bank of India, Punjab National Bank, HDFC Bank, Axis Bank, Canara Bank, ICICI Bank, Citibank and Barclays to request a certificate of no objection.

Genera has meanwhile approached the Indian Competition Commission (ICC) antitrust regulator for approval to acquire Trafigura’s stake in Nayara, sources said.

Indian banks and the ICC did not respond to requests for comment. Citibank and Barclays declined to comment. (Additional report by Julia Payne in London and Stephen Jewkes and Elisa Anzolin in Milan; Editing by Simon Webb and Alexander Smith)



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