Russian Technologies aviation assets valued at 2.5% of Aeroflot equity - newspaper
MOSCOW. March 15 (Interfax) - The aviation assets controlled by Russian Technologies have been valued at the equivalent of 2.5% of shares in Aeroflot Russian Airlines , Vedomosti reported, citing sources.
That amounts to 1.89 billion rubles, based on Aeroflot's capitalization at the end of March 2010 (the valuation date).
A source close to Aeroflot top management named a similar figure in February, approximately 1.7 billion rubles. The source said the actual figure might be lower depending on the valuation methodology.
Russian Technologies has objected to the valuation result, arguing that the aviations assets are worth up to 5% of Aeroflot shares, Vedomosti said. The state corporation said as much in a letter to Aeroflot on Monday. Russian Technologies argues that the valuation ignores intangible assets (brands, rights to international routes, slots at airports abroad, etc), undervalues material assets, and uses incorrect discount factors and valuation methods.
However, Russian Technologies chief Sergei Chemezov will make up his mind on the issue before the end of March, prior to a meeting with Aeroflot head Vitaly Savelyev.
Regardless of the outcome, a seat on the Aeroflot board of directors may soon go to Chemezov, who is a candidate nominated by the state. Shareholders will elect the new board at the annual meeting.
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