"SIBUR Holding is valued at more than $20 billion as part of a deal to merge its petrochemical business with TAIF. This was reported by Interfax news agency.

According to the media, the valuation was formed based on the principle similar to the way companies are valued for IPOs. The amount exceeded $20 billion.

The interlocutor of the news agency has noted that the creation of the united company has "objective restrictions of technical nature" in the context of the future IPO of the combined company.

So, according to him, preparation of corporate documentation, which is obligatory when making a decision on the initial public offering, takes some time after the deal is closed. Besides, it takes time to present the merged company with all its advantages to the market, he added.

SIBUR representative said that the decision on the company's IPO and its possible timing is the shareholders' prerogative.

At the same time the company has stated that as a whole it is "not a monetary transaction", it is "creation of the united company", writes the agency.

TAIF's main oil and gas chemical assets are Nizhnekamskneftekhim, one of the world's largest producers of synthetic rubbers, and Kazanorgsintez, a Russian producer of polyethylene.

SIBUR concluded that the list will be determined after the necessary corporate decisions are made and after the approval of the regulators.

Made in Russia // Made in Russia

Author: Ksenia Gustova