Rostelecom plans to sell 15% of shares at 120 rubles a share in 2014 SPO - paper
MOSCOW. Dec 10 (Interfax) - OJSC Rostelecom has tentatively set the parameters for a secondary public offering (SPO) in the second half of 2014, Kommersant said quoting a source close to the telco.
It is thought the company will place up to 15% of ordinary shares totaling 46 billion rubles at a price no less than 120 rubles a share. A price of 120 rubles a share corresponds to a stake of 14.36% ordinary shares.
Rostelecom ordinary shares closed at 106.24 rubles on the Moscow Exchange on Monday, December 9.
Rostelecom president Sergei Kalugin told journalists late November about the company's plans to sell part of its treasury and quasi-treasury shares in a 2014 SPO. He said that there is also the possibility of selling treasury stocks to strategic investors, but the decision is in the hands of shareholders. "This has not been completely worked through," Kalugin said.
He said that neither the banks for organizing placement nor the specific trading floor have yet been selected.
"We would like to increase the company's value, to make Rostelecom stock a first-class security so it will be bought by first-class investors," Kalugin said.
Subsidiary Mobitel holds 9.38% of the state telecom's voting stock and 12.55% of the operator's preferred shares. The main part of this package, 7.45% of voting stock, was purchased in November from companies owned by Konstantin Malofeyev at 126.7 rubles a share.
Rostelecom itself holds 7.21% of its own ordinary shares and 17.5% of prefs (8.07% of capital) bought in September from minority holders who disagreed with the holding's merger with Svyazinvest. These shares were purchased in September at 136.05 rubles a share.
In February-March of 2014, Rostelecom will purchase additional shares from minority shareholders who are not participating in the December 30 vote to spin off mobile assets. The Rostelecom board has approved a price of 123.93 rubles per ordinary share and 87.8 rubles per preferred share. The company cannot spend more than 22.9 billion rubles or 10% of the value of its net assets as of October 31 on the buyback.
Rostelecom's largest shareholder is federal property agency Rosimuschestvo with 46.99% ordinary shares or 43.07% issued shares. State lender Vnesheconombank (VEB) has 4.04% and 3.7% respectively, therefore the state in total owns 51.03% of voting shares and 46.77% of issued shares in Rostelecom.
The Russian Direct Investment Fund (RDIF) and Deutsche Bank each have 1.35% of ordinary shares. Gazprombank owns 1.13% of voting stock.