'Group Led By U.S. Billionaire Todd Boehly Preparing A Securities Swap To Acquire Lukoil's Foreign Assets; A Bank Acting On Behalf Of The Consortium Has Purchased Billions Of Dollars Of Frozen Lukoil Securities From Western Investment Funds To Exchange For The Company's Foreign Assets' - Reuters Exclusive

Bank working for consortium has bought billions of dollars of Lukoil securities, two sources say
Lukoil's international portfolio initially valued at $22 billion
Sale process has dragged on for over a year
LONDON, Nov 3 (Reuters) - A consortium led by US billionaire Todd Boehly is preparing a securities swap to acquire sanctioned Russian oil major Lukoil's international assets and a deal is expected within weeks, four people close to the sales process said.

A bank acting on behalf of the consortium has purchased billions of dollars of frozen Lukoil securities from Western investment funds to exchange for the company's foreign assets, three of the people said.

The people declined to be identified because they are not authorised to discuss the matter publicly.

If completed, the transaction would conclude a sale process that has dragged on for more than a year and initially valued the portfolio involved at $22 billion. Lukoil's foreign assets include oilfields, refineries and petrol stations in Europe, the Middle East and Africa.

The value of the portfolio has deteriorated as some assets have stopped operating, two people said.

A deal would also test whether Western sanctions can compel a major Russian company to divest international assets while keeping strategic oil operations and limiting financial gains to Moscow.

The consortium includes Boehly, a Miami-based businessman who owns stakes in Los Angeles sports teams the Dodgers and the Lakers, and Emirati investors International Holding Company (IHC) and Al Hail Holding. The Syrian-Qatari Al-Khayat brothers and the US International Development Finance Corp (DFC) are also backing the bid.

Representatives of Boehly did not respond to multiple requests for comment. An IHC spokesperson said they do not comment on potential investment activities. Al Hail, the Al-Khayats and the US DFC did not respond to requests for comment.

Lukoil did not immediately respond to a request for comment.

The plan is for a cashless deal in which frozen Lukoil securities held by Western investors, including Capital Group, would be exchanged for Lukoil's international assets, the people said.

Capital Group declined to comment.