An investor consortium led by US businessman Todd Boehly is preparing a bid for Russian oil company Lukoil's overseas assets using a swap involving frozen securities. Reuters reported the proposed structure on November 3, citing four people familiar with the talks. The transaction has not been completed and would require clearance from US regulators.
According to the people interviewed, a bank acting for the consortium has already purchased billions of dollars' worth of frozen Lukoil securities from Western funds and banks, paying about 30 cents on the dollar of their face value. In return, the investors hope to acquire the company's foreign oil production and refining facilities, as well as its filling stations. The reported securities purchases are based on the sources' accounts, not publicly available contracts.
The agency’s sources named the UAE-based International Holding Company and Al Hail Holding, the Al Khayyat brothers and the US International Development Finance Corporation (DFC) among the proposed participants. Representatives of several prospective partners either did not respond or declined to comment on possible investments. An earlier valuation of the assets at approximately $22 billion should not be treated as an agreed price for this transaction.
The sources said the investors proposed placing the securities in escrow instead of transferring them directly to Lukoil. The structure is intended to address concerns at the US Treasury, which previously rejected another proposal to prevent the sanctioned company from receiving a financial benefit.