Russian mobile operator MegaFon has reiterated its intention to list on the London Stock Exchange (LSE) this year amid speculation the UK regulator may force a postponement until 2013.
Various media reports today quoted unidentified sources familiar…
Russian mobile operator MegaFon has reiterated its intention to list on the London Stock Exchange (LSE) this year amid speculation the UK regulator may force a postponement until 2013.
Various media reports today quoted unidentified sources familiar with the matter as saying MegaFon may not be able to hold the IPO this year unless the UK Listing Authority (UKLA) grants its approval shortly.
The UK’s Financial Times newspaper reported that Goldman Sachs’ last-minute withdrawal as a financial adviser for the IPO has created further complications. The paper cited unnamed sources familiar with the subject as saying the bank had corporate governance concerns related to the planned restructure of assets belonging to controlling shareholder Alisher Usmanov, who owns a 50% stake in MegaFon via holding company AF Telecom.
Responding to the rumours, a MegaFon spokesperson said the company still plans to hold the IPO this year, adding that its exact timing will depend upon how quickly the prospectus can be updated and finalised. The revised prospectus, which will include Q3 results announced today and recent acquisitions, requires the approval of the UKLA. Megafon recently agreed to acquire a 50% stake in Russian retailer Euroset for US$1.3bn.
MegaFon announced on 22 October that the IPO roadshow would be delayed until after the announcement of the Q3 results.
The company reported positive results for the quarter, including consolidated revenues of Rbs71.23bn (US$2.26bn) – up 12.3% from Q3 2011. OIBDA was up 21.1% year-on-year to Rbs32.138bn (US$1bn), while the OIBDA margin was 45.1% versus 41.9% in Q3 last year. Net income was up 19.6% year-on-year to Rbs14.95bn (US$473.4m), while net debt totalled Rbs139.89m (US$4.4bn).
MegaFon CEO Ivan Tavrin highlighted the company’s “strong performance” across all business sectors driven by “solid sequential revenue growth, strong OIBDA gain with the highest margin in the last eight quarters, increased cash flow, and the highest ever quarterly net income in the history of the company”.
