MOSCOW, October 9 (RIA Novosti)
MegaFon, one of Russia’s top three mobile firm operators, intends to hold an initial public offering (IPO) in Moscow and London in the fourth quarter of this year, MegaFon said on Tuesday, in a flotation which could be worth up to $4 billion.
MegaFon intends to sell up to 20 percent of its stock. The company, one of Russia's “Big Three” mobile operators, will offer ordinary shares on the combined MICEX-RTS Stock Exchange and its common stock and Global Depositary Receipts (GDRs) on the London Stock Exchange.
Finnish and Swedish telecoms giant TeliaSonera plans to sell 10.6 percent of MegaFon's shares on condition it retains 25 percent plus 1 share in the firm while another 9.4 percent will be offered by a MegaFon subsidiary, MegaFon Investments.
"As originally articulated on April 24, depending on the results of the IPO, TeliaSonera may reduce its current 35.6 percent ownership and still keep a long term strategic ownership of at least 25 percent plus one share in MegaFon after the IPO," the company said.
MegaFon will use the IPO proceeds to repay current liabilities and spend funds on general corporate needs, including further development and network expansion, it says.
Morgan Stanley and Sberbank CIB (formerly Troika Dialog brokerage) have been appointed as the IPO global coordinators while Citi, Credit Suisse and VTB Capital will act as joint bookrunners.
MegaFon CEO Ivan Tavrin said the current market environment was the most appropriate time for the IPO, which will represent a new stage in the firm’s development
Add to blog
You may place this material on your blog by copying the link.
Image Galleries: Yury Gagarin: A down-to-earth person
Infographics: The Linguistic Diversity of the Planet
Ukraine has not preserved its 1991 borders. The signing of the Geneva memorandum on April 17 reaffirmed the willingness of Russia, the United States and EU countries to reach a compromise. While the sides continue to trade tough talk and symbolic sanctions, the Kremlin and the White House are also holding a parallel dialogue on the coordinated geopolitical revision of Eastern Europe.