Novinsky concentrates 82% of Regal Petroleum

Smart-Holding, controlled by Ukrainian businessman Vadim
Novinsky, increased its stake in the gas and oil E&P company Regal
Petroleum (RPT LN) to 82.65% from 54.00%, the holding reported on June 21. The
transaction involved Smart-Holding’s subsidiary, Pelidona Services, purchasing
the entire Regal stake in Kylestone Limited, a company controlled by another
Ukrainian businessman, Victor Pinchuk, Interfax-Ukraine reported.

Commenting on the deal, Smart-Holding reported that it
won’t affect neither Regal’s corporate governance nor its status of a publicly
listed company. Pelidona is also not intending to continue any purchase of
Regal shares on the market, the holding said. “Regal Petroleum is demonstrating
good production results and will continue to remain the basis of the gas
production direction of Smart-Holding,” its press release said.

Alexander Paraschiy: Pinchuk’s presence in Regal Petroleum, which also controls another
small gas E&P company, could have created the potential for a conflict of
interest. Therefore, Pinchuk’s exit looks encouraging for Regal’s business and
its potential to increase value for its shareholders.