Yukos' shares issued within merger with Sibneft repudiated

YUKOS' registrar M-Reestr repudiated YUKOS shares issued within the framework of the merger with Sibneft, says the registrar's statement.

The shares were repudiated in compliance with implementing the decision of the Federal Service on Financial Markets (FSFM), which late in June repudiated additional YUKOS' stock issue, held within the framework of the merger with Sibneft.

"The emitter and the registrar were notified of our decision", said a representative of the FSFM press service earlier.

On May 31, the Moscow Arbitration Court confirmed the invalidity of additional YUKOS stock issue. Thus, the court dismissed the appeal of the disgraced oil company as to the first instance's decision of March 1, 2004.

As was reported earlier, Sibneft's former shareholders Nimegan Trading Ltd. And Gemini Holding Ltd. lodged a suit against the Federal Commission on the Securities Market (now transformed into Russia's Federal Service on Financial Markets) and YUKOS in January this year. In their opinion, during the fifth additional YUKOS stock issue, the provisions of the law on the securities market were infringed.

The complainants, in particular, stated that in performing the stock issue, the full list of documents was not submitted and the applicable terms were not observed.

The first arbitration instance found the registration of the stock illegal, and the issue of shares invalid, thus sustaining the claim. However, YUKOS appealed against the court decision.

In 2003, within the framework of the merger with Sibneft, YUKOS took possession of 92% of the company's shares - 20% of Sibneft's shares were bought from the previous holders for $3 billion, another 72% of the shares were exchanged for YUKOS' shares. At this, 57.7% of Sibneft's shares were exchanged for newly issued YUKOS' shares. The legal validity of the stock issue was the matter of dispute.

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Author`s name: Editorial Team