Russia VTB State Stake Sale Expected in 1st Half, Seeks to Raise $3 Billion

April 19, 2013


The head of Russia’s privatization push said Friday that state-controlled bank VTB (VTBR.RS) still plans to go through with a secondary public offering in the first half of this year.

Olga Dergunova, deputy economy minister and head of Russia’s state property management agency, said the bank hoped to raise $3 billion in the sale.

VTB, Russia’s second largest lender, plans to list all new shares on Moscow’s primary stock exchange. VTB’s main competitor, Sberbank (SBER.RS) raised $5.2 billion in an SPO last fall but issued some shares in London.

In early 2013, Russian President Vladimir Putin said the upcoming privatizations of state-controlled companies should be done through Russia’s stock exchanges rather than through foreign bourses.

Ms. Dergunova also said that the secondary offering for state-run diamond miner Alrosa and initial offering for tanker company Sovcomflot would be carried out this year. The government had intended to sell shares in Sovcomflot in two lots of 25% minus one share.

The federal government plans to float 7% of Alrosa (ROSA.RS) with the government of the Republic of Yakutia floating an additional 7%. The sale is hoped to raise $1 billion, she said.

Ms. Dergunova also said the government was concerned about the rights of minority shareholders following complaints by minorities of TNK-BP Holding (TNBP.RS) following the company’s sale to state-run oil giant Rosneft (ROSN.RS).

“Minority shareholders must be respected. We are well aware of that,” she said on the sidelines of The Russia Forum 2013, a conference organized by Sberbank.