Russia Urals Energy jumps 13 pct on asset sale talk

The London-listed shares of Russian mid-sized oil firm Urals Energy jumped 13 percent.

Russia Urals Energy jumps 13 pct on asset sale talk

The London-listed shares of Russian mid-sized oil firm Urals Energy jumped 13 percent on Monday as traders expect shareholders to green light the sale of two key assets.

An extraordinary general meeting (EGM) was due to start at 0800 GMT in Cyprus, where shareholders will decide on selling its shares in East Siberian strategic assets ZAO Dulisma and Taas Yuriakh to Russia's biggest lender, Sberbank.

The sale would help Urals Energy meet obligations to Sberbank under two separate loans totalling $630 million.

Urals Energy declined to comment on the meeting.

At 1016 GMT, Urals' shares were trading 13.0 percent up at 3.495 pence, extending earlier gains of 8.7 percent.

Shareholders will also decide on whether or not to delist from AIM, London's junior market for smaller and medium-sized companies. "The directors expect to cancel the company's admission to AIM following the disposal of the assets," Urals said on its Web site, www.uralsenergy.com.

In early January, Urals said discussions regarding a potential offer for the company with an undisclosed third party had ended and no offer was made.

As the financial crisis bites further into Russia's oil industry, mid-sized oil firms are becoming increasingly vulnerable as acquisition targets, analysts say.

Reuters
Last Mod: 26 Ocak 2009, 14:45
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