Russian Railways Eyes London Float to Go Private

© RIA Novosti . Valeriy Melnikov / Go to the mediabankRussian Railways Eyes London Float to Go Private
Russian Railways Eyes London Float to Go Private          - Sputnik International
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Russia's state-owned rail giant Russian Railways is eyeing a London float in a part-privatization that would value it at more than 1.7 trillion rubles ($53 billion), The Independent reported on Wednesday.

Russia's state-owned rail giant Russian Railways is eyeing a London float in a part-privatization that would value it at more than 1.7 trillion rubles ($53 billion), The Independent reported on Wednesday.

“Russian Railways, whose assets include 85,200 km of track, 1 million employees and 1 billion passengers, is planning to sell as much as a quarter of the business in 2015 or 2016 through a share listing,” the paper said.

Russian Railways President Vladimir Yakunin told the paper London was his preferred location, after Trans Container, Russian Railways' subsidiary container-handling operation, was floated there in 2010.

"We have been working in London for many years and we are known here in this market. My private position is that there is a supportive case for placing the shares of the mother company here in London as well," Yakunin said in an interview in London.

"My preference is for the place where we see the most serious investors… In three years, of course, the situation could change. But I feel quite comfortable in London and dealing with its banks and investors.”

A London float would see Russian Railways follow Evraz steel maker, part-owned by Chelsea football club owner Roman Abramovich, and the Polymetal gold and silver producer into the FTSE 100.

“Russian Railways is attempting to transform itself from a symbol of soviet-era style management to a modern, transport-industry leader and plans to spend 13 trillion rubles by 2030, upgrading the network, adding 30,000 km of track, building new stations and beefing up security,” the paper said.

In June 2012, the Russian government approved a final privatization plan for major state assets, under which a stake of 25 percent minus one share in Russian Railways was slated for sale in 2012-2013. Russian Railways head Yakunin said the company’s privatization to sell its 25 percent minus one share package in 2012-2013 was unrealistic due to unfavorable markets and the need to carry on the rail giant’s reformation to 2015.

Yakunin said a part privatization of Russian Railways was advisable after 2015.

 

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