Plans for Detsky Mir IPO, Bashneft SPO still in works, but depend on market situation - AFK Sistema
MOSCOW. April 3 (Interfax) - The plans for the Detsky Mir IPO and Bashneft SPO are still on the table, but depend on the state of affairs on the market, the president of parent company AFK Sistema , Mikhail Shamolin, said during a conference call.
"We do not know what will happen tomorrow and need to wait at least a month to see how the situation develops," he said. Detsky Mir had previously said it would conduct the IPO during the spring "window."
"We are not dropping the placements from the agenda, but we cannot promise that we will do them under any circumstances," he said.
Sistema has offers for a private placement of Detsky Mir shares from several direct investment funds and pre-IPO funds, Shamolin said. "We are negotiating," he said.
Sistema's finances are not under pressure due to the IPO postponement, since it has sufficient resources, he sad. On the other hand, the company looks to the IPO not only as a means of monetizing the asset, but as a way to improve corporate governance and increase transparency.
Detsky Mir planned its IPO on the London Stock Exchange for this month, but placement could be put off until next year due to market conditions.
Prior to the Ukrainian crisis, AFK Sistema said that Bashneft's placement was possible in the second half of this year.