Commerzbank EM Credit Notes - TNK-BP: Is the joint-venture coming to an end?
May 31, 2012
The recent news flow suggests that both of TNK-BP’s shareholder groups are ready
to discuss a possible change in the long-tarnished Anglo-Russian oil partnership. The
recent developments come as no surprise given TNK-BP’s long record of shareholder
disputes. However, reaching a mutual agreement that will lead to a satisfactory exit
for any of the two shareholders will be very challenging. TNK-BP is an expensive
asset that neither shareholder can afford to pay for and at the same time too attractive
an investment to give up easily. The re-emergence of the shareholder clashes is
unlikely to disturb TNK-BP’s daily operations and TNK-BP’s credit profile remains
solid. The stakes are high and whether or not the shareholders ultimately reach a
mutual agreement we do not believe TNK-BP’s future value will fade. The impact on
the bonds has been marginal so far, in line with the general risk-off sentiment. We
anticipate some volatility, more towards the longer-end of the curve and take a neutral
view on TMENRU’s bonds until the shareholders’ objectives are clearly spelled out.
For more details please go to our Comments section.
Company — RN Holding
Full nameOpen Joint Stock Company RN Holding
IndustryOil and gas