Russian investors stalled in bid for Macedonia's Makpetrol
02/11/2016 15:25
* Former TNK-BP manager and partner seek to buy Makpetrol
* Investors allege Macedonia's SEC has kept them in the dark
* Macedonian securities commission says needs more time
* SEC says an issue needs resolving by another authority
SKOPJE/LONDON, Nov 2 (Reuters) - Two Russian investors, who
made their fortunes in oil, are seeking answers from Macedonian
authorities over why their bid to buy fuel distributor Makpetrol
MPT.MKE has stalled.
Alexander Kaplan and Alexander Smuzikov previously worked in
and with TNK-BP, a venture between Russian oligarchs and oil
major BP BP.L which was sold in 2013 to Kremlin oil firm
Rosneft ROSN.MM for $55 billion.
Kaplan alleges he and Smuzikov have been kept in the dark
about progress of their attempt to buy control of one of
Macedonia's largest companies and have lodged an appeal against
the country's Securities and Exchange Commission (SEC).
The Macedonian government declined to comment on the bidding
process, while the country's independent SEC said a review of
the proposed acquisition had been halted because under
Macedonian law another authority needed to resolve an
unidentified issue before it could proceed.
One of TNK-BP's founding oligarchs, Mikhail Fridman, was
prevented by British authorities from investing in North Sea gas
fields in 2015 because of fears he may come under Western
sanctions over Russian actions in Ukraine.
In Macedonia, a British company owned by Kaplan and Smuzikov
called Balkan Petroleum filed for SEC permission to buy control
of Makpetrol for 47 million euros in July. This represented 150
percent of its market value, plus 30 million euros of debt.
"We decided to invest in Makpetrol at the end of 2015, when
the government of Macedonia held a presentation for investors in
Israel," Kaplan told Reuters, adding that communications with
the Macedonian authorities had been "very poor".
Kaplan said that the SEC is required by law to respond
within 10 days on whether to allow a firm to go ahead with a
public takeover offer. The regulator told Reuters no procedural
deadlines had been breached.
"The process has been delayed because the SEC...has
identified an issue, that represents a separate legal matter
that is under the authority of another state body," the SEC said
in an emailed response to Reuters.
"Without a decision from the other body, SEC cannot decide
upon the request and that is why it stopped the procedure,
therefore you cannot say the deadline has been breached."
Kaplan said the SEC had asked Balkan Petroleum to submit
additional information in July and then again in August, before
saying in September that it was suspending the review, pending a
decision by "another authority".
"We were never told what authority that was and what issue
needs to be discussed," Kaplan said, adding he had asked for
explanations but was told the information was confidential.
Balkan Petroleum has filed an appeal against the SEC with
the commission in Macedonia which oversees the financial
regulator, but has yet to hear back, Kaplan said.
(Reporting by Kole Casule and Dmitry Zhdannikov; Editing by
Alexander Smith)
((Dmitri.Zhdannikov@thomsonreuters.com;))
Keywords: MAKPETROL M&A/INVESTORS