MOSCOW (Reuters) - Rosneft (ROSN.MM) may dig deeper into its pockets and raise funds from TNK-BP TNBP.MM to help finance its $55 billion takeover of the Anglo-Russian oil firm that will make it the world's largest listed oil firm by output.
Rosneft said in a Eurobond prospectus, dated November 23 and obtained by Reuters on Monday, that it may use its and TNK-BP's existing cash - which totaled over $15 billion at September 30 - to fund the deal in combination with borrowings from banks.
It was not clear how exactly state-controlled Rosneft would rely on TNK-BP to finance the deal - some analysts say the joint venture may eventually pay a special dividend or loan funds to Rosneft to help complete the deal.
Rosneft needs $45 billion in cash to fund its two-stage takeover of TNK-BP. In the first leg, which has already received Russian government and board approval, it will buy out British oil major BP's (BP.L) one-half stake for stock and $17.1 billion in cash.
BP would plough back $4.8 billion of proceeds into buying Rosneft shares from the Russian state, ending up with a stake of nearly 20 percent.
In the second step, Rosneft would pay $28 billion in cash to buy the rest of TNK-BP from AAR, a consortium that represents billionaire shareholders Mikhail Fridman, German Khan, Viktor Vekselberg and Len Blavatnik.
Rosneft also said in the prospectus that it has received a commitment from a syndicate of international banks to lend around $30 billion, including up to $7.5 billion in long-term financing, to fund the takeover.
Reuters Loan Pricing Corporation reported on November 15 that Rosneft was receiving initial commitments of $32.5 billion in takeover finance from banks.
A source close to the deal told Reuters that Rosneft will hold roadshow for a dollar-denominated Eurobond between Monday and Wednesday of this week.
The offering is expected to be of benchmark size, meaning it would raise $500 million or more.
Reporting by Vladimir Soldatkin and Katya Golubkova; Editing by Douglas Busvine and Mark Potter