Sberbank could launch SPO this week - paper
MOSCOW. Sept 11 (Interfax) - Sberbank resumed talks with investors on the privatization of a 7.6% stake on Friday and could start book building this week, the Kommersant newspaper said, quoting sources close to the lender.
Sberbank is going ahead with the long-delayed SPO due to the market upturn following the European Central Bank's announcement of monetary loosening and expectations of a similar announcement by the U.S. Federal Reserve this week, the paper's sources said.
Sberbank is part of Russia's 2011-2013 privatization plan. The Central Bank plans to sell 7.58% of the bank's stock. It currently holds 60.3% of Sberbank ordinary shares (57.6% issued shares).
Sberbank privatization has been deferred more than once due to market conditions and the deal has not yet got as far as book building.
Analysts and investment fund managers Interfax polled recently suggested that after the publication of its financial report to International Financial Reporting Standards (IFRS) on August 29, Sberbank could release new information on its SPO plans.
Economic Development Minister Andrei Belousov told reporters early September that market conditions are now comfortable for a deal to take place.
Sberbank closed Monday at 94.94 rubles a share on the MICEX-RTS, below the threshold of 100 rubles that CB First Deputy Chairman Alexei Ulyukayev said had to be achieved at the start of the year for an SPO to take place, although CB officials have not made similar statements in recent months. The investment bankers say a deal is not guaranteed to take place even if the 100-ruble threshold is exceeded. They say a discount will be needed to make the SPO a success and give investors an incentive to buy: Sberbank is one of Russia's most liquid stocks as it is and it is possible to buy a large stake at market price at any time.