OREANDA-NEWS. May 3, 2012. The Extraordinary General Meeting of Shareholders of JSOC Bashneft convened today in Ufa has made the decision to reorganize the Company through legal merger of its subsidiaries, OJSC Bashkirnefteprodukt, OJSC Ufaneftekhim, OJSC Orenburgnefteprodukt, OJSC Ufimsky refinery plant and OJSC Novoil, with Bashneft and approved the Agreement on legal merger.

The Meeting of Shareholders has made a decision to increase the authorized capital of JSOC Bashneft. Therefor the Company placed 60,340,000 additional ordinary registered shares with a par value of 1 ruble per share and 7,090,000 additional class A preferred registered shares with a par value of 1 ruble per share to be exchanged for ordinary and preferred shares of the subsidiaries to be merged with Bashneft.

Prior to this meeting, on 26 April 2012, extraordinary general meetings of shareholders of OJSC Bashkirnefteprodukt, OJSC Ufaneftekhim, OJSC Orenburgnefteprodukt, OJSC Ufimsky refinery plant, and OJSC Novoil made a decision on reorganization through legal merger with JSOC Bashneft, approved the Agreement on legal merger and transfer certificates.

"The decisions made by the meetings of shareholders are an important step on the way to Bashneft’s stock swap aimed at increasing the Company’s operational transparency, enhancing its efficiency and the quality of corporate governance," stated the Chairman of the Board of Directors Alexander Goncharuk. "The reorganization of Bashneft is conducted in a way that ensures the rights of minority shareholders giving them an opportunity to benefit from the Company’s overall financial performance by exchanging their shares or by monetizing their investments in Bashneft’s subsidiaries selling their securities at fair market value in the course of share repurchase."