Russia’s MegaFon is reportedly postponing its planned US$4bn London IPO until autumn because of poor market conditions.
While the mobile operator had planned to hold the IPO in July, the economic crisis in Europe and the weak euro have prompted…
Russia’s MegaFon is reportedly postponing its planned US$4bn London IPO until autumn because of poor market conditions.
While the mobile operator had planned to hold the IPO in July, the economic crisis in Europe and the weak euro have prompted the postponement, media reported with reference to Russian daily Vedomosti. The Russian report cited several investment bankers and a person close to the IPO.
Announcing major changes to MegaFon’s ownership structure in late April, major shareholders said they planned to list up to 20% of the company’s shares on the London Stock Exchange (LXE) “as soon as practically possible”.
According to a recent media report, the company has mandated Russia’s Sberbank, Goldman Sachs and Morgan Stanley to act as global co-ordinators for the deal and Sberbank, Citigroup, Credit Suisse and VTB Capital as joint bookrunners.
The ownership reshuffle saw Alisher Usmanov’s AF Telecom acquire a controlling stake in the company of 50% plus one share, Sweden’s TeliaSonera reduce its stake to 35.6% and Russia’s Altimo exit the business entirely.
On 24 May, MegaFon announced it had appointed a new board of directors and management board.
The listing of 20% of MegaFon could be the largest IPO in the UK in a year.
In 2011, Megafon generated revenues of Rbs242.6bn (US$8.2bn), and a net income of 43.6bn (US$1.48bn), according to its website.
MegaFon and TeliaSonera declined to comment.
