9 Oct 2018 10:15

Russian Railways board might consider reducing stake in GEFCO to 40% by year's end

MOSCOW. Oct 9 (Interfax) - The board of directors of Russian Railways (RZD) might consider the issue of reducing the company's stake in French logistics company GEFCO to 40% before the end of this year.

"Such a decision has not been made yet. This will be discussed by the board of directors. Whatever [it] decides, that's how we'll proceed. I think that [the board will consider this issue] in the next three months," RZD senior vice president Vadim Mikhailov said at a briefing on Monday.

RZD's updated draft long-term development program states that RZD might reduce its stake in GEFCO to 40% in 2020, while this past summer's version of the program stated that the company intended to maintain a stake of 50% until 2025 at least. However, the new version states that RZD will retain control and that there will be "consolidation into the financial model of the holding."