Transneft issues shares to prepare for merger

Transneft's Board of Directors has made the decision to issue 882,220 additional shares worth nearly RUR52.554bn (approx. USD2.126bn) to ensure a merger with Transnefteproduct, the Russian pipeline giant announced in a statement Tuesday, RBC reports. The shares are to be placed by private subscription in favor of the Federal Property Management Agency at a par value of RUR59,570 (approx. USD2,410) per share. The issue will be fully paid for by Transnefteproduct's government-owned shares.