Alliance Oil: Successfully Completes Share Offering

Alliance Oil has successfully completed the largest preference share offering in Scandinavia in recent years. The transaction has received interest from about 4,500 investors and Company shareholders in total with solid demand both among institutional (about two thirds of demand) and retail investors (about one third of demand). Demand was split roughly 50/50 between Swedish and international investors.

Following a bookbuilding process, the issue price for the new class of preference shares was set at SEK 270 per share, representing a yield of about

11.1 percent (dividend of SEK 30 per year). A total of 5 million (5,000,000) shares will be issued, indicating that the Company will raise SEK 1,350 million (approx. USD 202 million) before transaction costs. Following the transaction the total number of shares in the Company will be 176,528,414 with the preference shares representing 0.3 percent of the votes and 2.8 percent of the capital in the Company.

The settlement day will be 20 December 2012 and the first day of trading on NASDAQ OMX Stockholm is preliminary 2 January 2013.

“We are very pleased with the outcome of the transaction and proud to have attracted such strong interest among Scandinavian, European as well as Russian investors. It can be particularly noted that our offering records the first ever international preference share issue by a Russian business. The fact that our initial target of USD 100 million more than doubled with demand significantly exceeding the final allocations is a good indication of the markets’ perception of the attractive Russian oil & gas business and great confidence in Alliance Oil Company” Arsen Idrisov, Managing Director of Alliance Oil Company said.

Carnegie acted as Global Coordinator and Joint Bookrunner and Swedbank acted as Joint Bookrunner in the transaction. Gazprombank acted as leading Russian selling agent. Baker & McKenzie acted as legal advisor to Alliance Oil.

Also visit www.allianceoilco.com