UAC board to examine IPO for Ilyushin Finance in July
ZHUKOVSKY. July 1 (Interfax) - United Aircraft Corporation (UAC) will examine the issue of an IPO in Ilyushin Finance Co (IFC) in July, UAC President Alexei Fyodorov told journalists on Thursday.
"The issue will be examined at the next meeting of the UAC board of directors in July. It should make a principle decision on the Ilyushin Finance IPO," he said.
Consultations are currently underway concerning the feasibility of an IPO, its parameters and timeframe, Fyodorov said.
Fyodorov said earlier that the UAC board would examine the issue in summer. "I think we will make a decision on whether to go ahead with or drop plans for an IPO this summer. Everything will depend on the market," he said. The board of directors has already held preliminary discussions on the matter, and it tentatively approved plans to place IFC shares in 2010, he said.
It was reported earlier that IFC plans to hold an initial public offering (IPO) in Russia in 2010, followed by a secondary public offering (SPO) on the Hong Kong Stock Exchange. Globex Capital and Eurofinance Mosnarbank are IFC's consultants.
IFC General Director Alexander Rubtsov said late last year that the agenda for the board meeting that approved the company's 2010 budget included an item on an IPO in 2010. "We would like to raise $200 million-$250 million. That amount is stipulated in the budget. We need it to finance planes that have been ordered," Rubtsov said in December.
IFC specializes in financing sales of Russian-made aircraft: Il-96, An-148, and Tu-204/214. UAC owned 48.4% of shares at the end of 2009. Alexander Lebedev's National Reserve Corporation and Vnesheconombank (VEB) also own large stakes.