Russian private investment group United Capital Partners (UCP), which agreed to buy a stake in India's Essar Oil, plans to keep a stake in the company for the next three-five years, UCP
representative Irina Lanina told Reuters.
and its partner Trafigura signed an agreement on Saturday to buy a 49 per cent stake in Essar Oil, which includes a 400,000 barrels per day (bpd) refinery, import and export facilities, and gas stations.
In written replies to Reuters questions, Lanina said that UCP
is sticking to long-term strategy regarding its stake in Essar Oil
but "everything depends on the market situation and the asset's valuation".
"We plan to make this investment in a consortium with our partner Trafigura and are likely to exit together with them as well. As of now, we are looking at (remaining in Essar) for three-five years but time will show," Lanina said.
Russian state oil company Rosneft
will get a 49 per cent stake in Essar Oil
in the deal, which was structured to mitigate western sanctions and was valued at $12.9 billion. It gives the energy-giant a gateway into the world's fastest growing fuel market.
Lanina said that UCP
plans to use its own funds and credit facilities to finance the acquisition of its stake but did not say how much it would cost.
Under the agreement, the 49 per cent stake is equally split between Trafigura and UCP. The billionaire Ruia
brothers own the remaining two per cent stake.
Lanina added that UCP
has no agreements to sell its stake to Rosneft
or other shareholders at the moment. "We do not plan to sell our stake to anyone in the near future," she said.