Boehly Consortium Prepares Lukoil Asset Swap

A consortium led by U.S. billionaire Todd Boehly is preparing a cashless securities swap to acquire the international assets of Russian oil company Lukoil, with a deal expected within weeks, four people close to the sale process told Reuters. The transaction has not been confirmed, and any sale would require approval from the U.S. Treasury’s Office of Foreign Assets Control. The proposed exchange would use frozen Lukoil securities held by Western investors to buy the company’s overseas oil fields, refineries and petrol stations. Three people said a bank acting for the consortium had already purchased billions of dollars’ worth of the securities. People close to the process said the bank bought them from about 10 U.S. and British investment funds and U.S. depositary banks at 30 cents per dollar of face value. Two people said the consortium advanced by promising to hold the securities in escrow rather than transfer them directly to Lukoil. U.S. officials previously rejected a competing offer involving Xtellus Partners, saying Lukoil should not receive a windfall in cash or shares. The U.S. Treasury did not respond to a request for comment on the current proposal. The consortium...