2 Oct 2019 16:24

Rosseti does not agree with direct sale as part of privatization, favors additional share issue

MOSCOW. Oct 2 (Interfax) - Rosseti has not yet discussed privatization with the government, but as a whole, it favors the mechanism of an additional share issue, head of the company Pavel Livinsky said on the sidelines of Russian Energy Week on Tuesday.

"We have not talked about this, we do not agree with privatization," he said. "An additional issue is the right measure, but only after our legislative initiatives are accepted, after a transparent dividend policy is provided for, after acceptance of a strategy and an option program. They have all been submitted," Livinsky added.

Rosseti favors an increase in liquidity of shares and believes an additional issue by public subscription, as opposed to selling stakes in the company, to be most viable to obtain financing for implementation of strategic projects, Yegor Prokhorov, the company's acting deputy head for strategy, said.

Earlier in the week, it became known that the draft privatization program for the next three years envisages privatization of government stakes in a number of leading companies for a total of around 18.5 billion rubles.

"Through 2022, there are plans to reduce the share of the Russian government in the charter capital of RusHydro , Sovcomflot, Transneft , Rostelecom , Rosseti and the United Grain Company. Specific timeframes and means of privatizing these companies will be determined by the Russian government in light of the market situation and recommendations of leading investment consultants in cases envisaged by decisions of the Russian government," reads the draft program, which has been published on the State Duma's electronic database.