Privatization deals could begin in Q2 2014 – Dergunova

GORKI. Feb 17 (Interfax) – Large-scale privatization deals could begin in the second quarter of 2014, the head of the Russian Federal Property Agency (Rosimushchestvo) Olga Dergunova told journalists on Monday.

“Agents will be best prepared for deals such as that of Sovcomflot in the second quarter. We will answer questions concerning the deal’s structure and [share] placement location. The future road map of Aeroflot’s (MOEX: AFLT) placement will be clear. That is, we will better understand the dates when we’ll do this. We are currently in the preparation phase of all deals, and they will begin to be carried out in the second quarter,” she said.

Dergunova said that one of the questions addressed at the meeting on privatization that took place Monday with Russian Prime Minister Dmitry Medvedev was Sovcomflot.

“The main topic of discussion was determining the structure of the deal – the previous deal called for part of funds to be directed at the company’s capital and part to the budget – and determining the location for the share placement because it was assumed the deal would take place on the stock exchange,” she said.

Dergunova said that a year ago the plan was to place the shares on the New York and Moscow stock exchanges. “Based on the priorities for developing the Moscow International Financial Center, the question is being discussed of how feasible it is to carry out a double placement, or to focus above all on the Moscow stock exchange, as was the case with the successful placement of Alrosa (MOEX: ALRS) shares,” she said. Regarding Aeroflot’s privatization, Dergunova said talks were taking place as to lowering the government’s stake in the company to 50% plus one share.

She said talks were also underway concerning the sale of 3% of Transneft (MOEX: TRNF) shares, and the privatization of the United Grain Company. “Simply put, issued regarding Moscow’s air hub and assets preparation were discussed, specifically consolidating the government’s stake in the two airports in which the state is a shareholder – Vnukovo Airport and the Sheremetyevo International Airport,” Dergunova said.