Domodedovo selects banks for possible share placement - sources
MOSCOW. April 4 (Interfax) - Moscow-area Domodedovo Airport has selected Morgan Stanley, JP Morgan, and Goldman Sachs as organizers for its planned share placement, sources in banking circles have told Interfax.
One said a road show in the United States is planning for this month.
"As far as I know, it will be a non-deal road show, and shareholders [to sell shares or not] have not yet been determined," another source said. Another bank, Credit Suisse, is also working with Domodedovo, he said.
The airport might hold a private placement and not a public share offering, and the deal could be worth $1 billion, a source said.
DME Airport Ltd of Cyprus is slated to offer investors shares. "This is the management company for structures making up the group East Line [CJSC Domodedovo Airport Commercial Agency, CJSC Domodedovo Airport Holding, the Domodedovo terminal complex, among others]," a source said.
Proceeds from placement could be put toward the development of airport infrastructure.
The Domodedovo press service has declined to comment.
There were on the market last autumn rumors of a possible Domodedovo placement, and analysts put the airport's value at roughly $5 billion. However, the appraisals were rather conditional, as East Line does not reveal its financials.
There is also no trustworthy information about the airport's shareholders, about which officials at various levels have complained more than once, and the market considers its main owners to be Dmitry Kamenschik and Valery Kogan.
Domodedovo has the largest amount of passenger flow of the three Moscow airports. It served 22.2 million flyers last year versus Sheremetyevo's 19.3 million and Vnukovo's 9.4 million.
Last month, federal authorities and the city of Moscow agreed on the unification of Sheremetyevo and Vnukovo into a single complex potentially to be privatized in the future. The inclusion of Domodedovo in the process of unifying the Russian capital's airports was discussed, according to unofficial reports, but another option was chosen in the end.
As reported, Domodedovo and its partners will be investing 97 billion rubles in infrastructural development in the period until 2015. A new passenger terminal is to be built, along with additional parking and an arrivals hall with jetways. Plans also call for building a new underground railway station at an estimated cost of 10 billion rubles.
Domodedovo plans to be serving around 36 million people by 2016.