The privatisation of Rostelecom faces further delays, with communications and mass media minister Nikolai Nikiforov saying it is too early to say whether it will take place in 2016.
The Russian state-controlled telco and other assets had been tabled…
The privatisation of Rostelecom faces further delays, with communications and mass media minister Nikolai Nikiforov saying it is too early to say whether it will take place in 2016.
The Russian state-controlled telco and other assets had been tabled for privatisation between 2014 and 2016 in a July 2013 government decree. Sberbank had been hired to advise on the Rostelecom process.
The government put the telco’s privatisation on the backburner in 2014 but had indicated it would revisit it this year.
However, Olga Dergunova, director of the Federal State Property Management Agency, was quoted in local media earlier this week saying the government did not include Rostelecom in privatisation plans for 2015, but could withdraw from the asset next year.
Nikiforov has since been cited saying he would not affirm that the telco would definitely be privatised in 2016, adding that the government is waiting for an opportune time.
The communications minister noted that current economic conditions mean Rostelecom is currently undervalued. A decision on the sale will not take place before the government has resolved issues relating to “special consumers” and it believes it can get a fair price.
The Russian Federation owns 43.07% of Rostelecom’s charter capital, or 46.99% of common shares, via the state property management agency. Rostelecom subsidiary Mobitel owns 15.04% of the charter capital, or 13.99% of common stock, and Rostelecom itself owns 6.75% of the charter capital, or 6.12% of common stock. Minority shareholders include Russian bank VEB and the Russian Direct Investment Fund.
