CEFC did not officially refuse to purchase toxic shares of Rosneft

It's just that the Chinese company has problems with the authorities of the China and Western banks, and therefore it cuts half of its staff.
25.04.2018
Vedomosti
The Chinese company CEFC does not give up its intention to buy a 14.16% stake in Rosneft from the Qatar Investment Fund and the Glencore trader for $ 9.1 billion, said CEFC Vice President Zhuan Jianzhong at Bloomberg at an energy conference in Shanghai. According to him, the deal was influenced by the recent problems of the CEFC. The company can halve the staff, which is now 30,000, a source in one of the subsidiaries told Bloomberg. "We are trying to optimize the business and [the number of] staff and we hope that we will overcome all difficulties," Zhuang said.

The representative of Glencore declined to comment on the situation. Contact with a representative of the CEFC and the Qatar Investment Fund failed.

CEFC could not pay the current owners 19.5% of Rosneft's package of $ 1.8 billion - 20% of the share price in the form of the first tranche until early April. If this condition could be met, another Chinese company would have to pay about $ 7.3 billion by the end of September 2018, a person close to one of the parties to the deal told, and confirmed the interlocutor in one of the creditors of the current owners of these shares.

 Parties had to re-negotiate for later payments. "All participants decided to bring the deal to the end," - said the source of "Vedomosti", close to one of its sides.

CEFC is a private Chinese company that agreed last September to purchase 14.16% of Rosneft from a 19.5% stake owned by Qatar Investment Fund and Glencore. Glencore reported that it expects to close the deal in favor of the CEFC until July 2018.

But since the beginning of 2018, the CEFC has been in trouble. First, the law enforcement authorities questioned and put under house arrest the founder of the company E Jianmin, wrote the South China Morning Post. After that, CEFC could not close several deals both in China and abroad. The company began selling assets and assets worth about $ 3.8 billion, while Chinese courts froze a portion of the shares of CEFC subsidiaries, the newspaper reported.

Problems with the CEFC began as early as the end of 2017, when Western banks canceled earlier lines of credit for a Chinese company totaling more than $ 10 billion, one of Vedomosti's interlocutors said. A person close to the other side of the transaction confirms that problems with Western banks did arise last year, but he does not know the exact amount of canceled credit lines.

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