Finance Ministry expects value of Sovcomflot in privatization to increase in comparison to old valuation - Moiseyev
MOSCOW. Jan 26 (Interfax) - Russia's Finance Ministry expects the value of Sovcomflot to increase for privatization in comparison to its old valuation, Russian Deputy Finance Minister Alexei Moiseyev told journalists.
He said it was thought the budget could receive around 30 billion rubles from the privatization of Sovcomflot's stake of 25% minus one share. The previous valuation of proceeds from privatization of that asset totaled 24 billion rubles, which was done in 2015.
"It is simply a ballpark estimate [of 30 billion rubles] based on the fact that the previous valuation was done a long time ago and that Russia's equity market has risen since then. And that's how I estimated it in my head. Essentially there is no serious valuation, it is an approximate figure," he said.
"Clearly the valuation will be carried out before the sale and it'll be what it'll be," he said.
Sovcomflot's privatization is planned for the spring of 2017 as of now. The government has been planning to sell a stake in Sovcomflot since 2012 but the plans have not been implemented until now. In 2016 a new investment consultant for the sale of Sovcomflot was picked. Right now the investment consultant is VTB Capital with Sberbank CIB helping with the deal to sell it.
According to Interfax sources familiar with preparations for the placement, a new valuation for the company is still not ready, but work is underway.
