Russia’s economic development ministry has reportedly proposed to sell at least a 50% stake in Rostelecom after its government-decreed merger with state holding company Svyazinvest is completed.
Economic development minister Andrei Belousov made the…
Russia’s economic development ministry has reportedly proposed to sell at least a 50% stake in Rostelecom after its government-decreed merger with state holding company Svyazinvest is completed.
Economic development minister Andrei Belousov made the proposal in a letter to first deputy prime minister Igor Shuvalov, Russian newspaper Vedomosti reported, citing an unnamed source familiar with the matter.
A year ago, the Russian president ordered Rostelecom and Svyazinvest to merge to create a unified company and the process is expected to be completed before the end of this year.
Last year’s presidential decree stated the government and national development bank Vnesheconombank (VEB) would retain a controlling stake of at least 50% in the new company, which will operate under the name Rostelecom.
Late last year, Russian news agencies cited communications minister Nikolai Nikiforov as saying Rostelecom may be privatised in 2015, once its reorganisation is completed. Nikiforov said the government was considering several options for the privatisation, including an alliance or gradual entry into the market.
It has been suggested previously that the privatisation could raise about Rbs150bn to Rbs200bn (US$4.9bn to US$6.5bn).
BCS senior TMT analyst Anna Kurbatova said in a note to investors that news the privatisation is back on the agenda may raise speculative interest in the telco’s shares in the short term.
“However, we recommend investors do not overestimate privatisation prospects at this stage as they still look very gloomy to us.”
Kurbatova said her team does not see Rostelecom going private before 2015, the key obstacle being the government’s wishes to secure telecoms infrastructure for military purposes post-privatisation.
