The Wall Street Journal-20080116-West Siberian Resources- Alliance Oil Takes Stake In Reverse-Takeover Deal
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West Siberian Resources: Alliance Oil Takes Stake In Reverse-Takeover Deal
Russia's Alliance Oil will take a controlling share in Stockholm- listed West Siberian Resources Ltd. in a reverse-takeover deal valuing Alliance at $1.5 billion, West Siberian said. Closely held Alliance will become a wholly owned subsidiary of West Siberian. In turn, Alliance will get a 60% stake in West Siberian following the issuing of new shares. The deal would create an energy company with a market value of $2.5 billion, combining West Siberian's upstream activities, which produced 40,500 barrels of oil a day at the end of last year, with Alliance's refining capacity and retail network. West Siberian Chairman Eric Forss and Managing Director Maxim Barski will retain their roles in the new company. Members of the Bazhaev family, who control Alliance Oil, will become the combined concern's largest shareholders, the companies said.
