OREANDA-NEWS. JSOC Bashneft has completed its reorganization process through the consolidation of CJSC Bashneft-Invest. The reorganization marked the final step in implementing a comprehensive strategy aimed at streamlining the corporate structure based on the shares of a single company, eliminating cross ownership in Bashneft and divesting the Company's non-core businesses

Yesterday, tax authorities registered the winding-up of CJSC Bashneft-Invest. The 38,139,925 ordinary shares of Bashneft (a 16.8% stake in its authorized share capital) owned by the company were cancelled in accordance with the resolution of the Meeting of Shareholders of Bashneft adopted on February 3, 2014. In addition, 8,885,866 preferred shares bought back from Bashneft's shareholders as part of the reorganization were cancelled yesterday.

Following the cancellation of the above-mentioned ordinary and preferred shares, JSOC Bashneft's authorized share capital was reduced to 180,358,674 roubles (150,570,662 ordinary shares and 29,788,012 preferred shares with a par value of one rouble each). Amendments to the Charter of JSOC Bashneft reflecting the changes in the size of the Company's authorized share capital are to be registered with the tax authorities.

Following the completion of the reorganization, today the Moscow Exchange has resumed trading Bashneft's shares suspended as of April 24, 2014.

As was previously announced, on April 22, 2014 the Board of Directors recommended that the Annual General Meeting of Shareholders to be convened on June 10, 2014 allocate a portion of Bashneft's net income amounting to 37.48 billion roubles as dividend payments for 2013.

The Board of Directors is expected to make final recommendations on the amount of dividends per JSOC Bashneft share on May 14, 2014, subject to further approval by the Annual General Meeting of Shareholders taking into account the changes to the Company's authorized share capital as a result of the reorganization.