5% of RZD might be sold to VEB or some other fund - deputy minister
MOSCOW. Nov 8 (Interfax) - A stake of 5% of OJSC Russian Railways (RZD) might be sold to Vnesheconombank (VEB) or some other fund, Russian Deputy Transport Minister Alexei Tsydenov told the press on Thursday.
"This won't be a public sale; that is, it's not an initial public offering (IPO). The company isn't ready to have an IPO yet. In all likelihood, this will be a sale to either VEB or some other fund," he said.
A Transport Ministry representative previously told Interfax that privatizing 5% of RZD shares involves conducting an additional issue, adding that the placement method will be determined by the government.
Economic Development Minister Andrei Belousov said that the government is considering a pilot privatization for up to 5% of RZD in 2013.
The government-approved privatization plan envisages the sale of 25% minus one share in RZD in 2012-2013.