Skadden has announced that it is advising Otkritie Holding in connection with its USD 1.45 billion acquisition of JSC Arkhangelskgeoldobycha from LUKOIL.
According to a LUKOIL press release, the "transaction is expected to close in the first quarter of 2017 subject to approval by the relevant government authorities."
JSC Arkhangelskgeoldobycha is developing the V.P. Grib diamond mine — discovered in 1995 and actively developed since 2011 — in Russia's Arkhangelsk region.
"LUKOIL successfully developed a major diamond project from its very early stage and brought the Grib diamond mine to almost full capacity on time and within budget", said Alexander Matytsyn, Senior Vice President for Finance of LUKOIL. "Spinning-off of this non-core asset allows us to effectively monetize the significant shareholder value that we have created over the past five years."
"The acquisition of a 100% stake in Arkhangelskgeoldobycha is a strategic investment in an attractive asset with potential for further development," commented Dmitry Romaev, member of Otkritie Holding’s Board of Directors. "This acquisition diversifies Otkritie’s range of business interests as the largest privately-owned financial company in Russia."
Skadden did not reply to our inquiry about counsel for LUKOIL on the deal.
Editor's Note: After this article was published Akin Gump announced that it had advised Lukoil. More information on its involvement can be found here.
