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A number of privatization deals are sprouting in the spring air, with the government likely to make use of improved market conditions to sell a 7.6% stake in Sberbank in April. An SPO of VTB, IPO of Gazprom Media and sale of 10% in Rusnano are also in the offing. However, the government's privatization enthusiast Economy Minister Elvira Naibuillina could lose her job in an upcoming reshuffle, potentially slowing the privatization process.

Business daily Vedomosti reports March 15, citing unnamed sources, that Russia's Central Bank could make use of improved market conditions to sell 7.6% of Russia's largest bank, Sberbank probably in the second half of April. The placement that has been delayed since September 2011, with Central Bank looking for RUB100 per share for the placement. The share price is currently at R103.

The paper also suggested that a VTB SPO of 10% could come in autumn and noted previous quotes from VTBs CEO, Andrey Kostin, as saying that the offering could be a combination of new and existing shares.

"With Russian banks remaining one of the best plays on upbeat global macro sentiment and Sberbank offering the best exposure to it, we believe that demand will be strong and the placement has every reason to be successful," write VTB Capital analysts of the Sberbank deal.

"With regard to VTB, we think the market currently has no appetite for its placement, so soon after the previous SPO and the Bank of Moscow debacle, and it will take some time to mend bridges before a placement can take place," according to Rencap.

The government could also sell 10% stake in state-owned nanotechnology company Rusnano in a move which would mark the first privatization of one of the state corporations set up 2007-2008 to develop Russian technology. Rusnano, headed by Anatoly Chubais, Russia's 1990's privatization czar who went on to privatize Russia's power sector in 2007-8, could sell a stake to private investors in November-December, depending on market conditions, Vedomosti said March 15 citing Oleg Kiselyov, the company's deputy CEO.

Vedomosti also reports March 15 that Gazprom Media, which owns influential TV channel NTV and critical radio station Ekho Moskvy, could be IPOd in 2012. Prime minister Vladimir Putin in a series of pre-election articles had called for state companies to divest themselves of non-profile assets, including media assets, in a clear reference to Gazprom-Media. However, Gazprom-media vice-president Nikolai Senkevich said that the bank's owned Gazprombank was not considering an outright sale of the asset, which it regards as strategic.

In an interview published in the Gazprom magazine, Gazprombank board member Alexander Krasnenkov called Gazprom Media a sophisticated asset and said that Gazprombank would sell it as a non-core business and that management was working in this direction.

Casting a shadow over prospects for privatization, Izvestiya reports today that the government's most enthusiastic supporter of privatization, economy minister Elvira Nabiullina, could lose her job in an upcoming reshuffle. According to Izvestiya she could be replaced by Health minister Tatyana Golikova. Nabiullina's push for privatization of state stakes has been resisted by deputy prime minister Igor Sechin, who has said that privatization should be delayed until share prices recover past pre-crisis IPO prices, where applicable.

Keywords: Russia, Economy, Business - Russian News - Russia

 

A number of privatization deals are sprouting in the spring air, with the government likely to make use of improved market conditions to sell a 7.6% stake in Sberbank in April. An SPO of VTB, IPO of Gazprom Media and sale of 10% in Rusnano are also in the offing. However, the government's privatization enthusiast Economy Minister Elvira Naibuillina could lose her job in an upcoming reshuffle, potentially slowing the privatization process.

Business daily Vedomosti reports March 15, citing unnamed sources, that Russia's Central Bank could make use of improved market conditions to sell 7.6% of Russia's largest bank, Sberbank probably in the second half of April. The placement that has been delayed since September 2011, with Central Bank looking for RUB100 per share for the placement. The share price is currently at R103.

The paper also suggested that a VTB SPO of 10% could come in autumn and noted previous quotes from VTBs CEO, Andrey Kostin, as saying that the offering could be a combination of new and existing shares.

"With Russian banks remaining one of the best plays on upbeat global macro sentiment and Sberbank offering the best exposure to it, we believe that demand will be strong and the placement has every reason to be successful," write VTB Capital analysts of the Sberbank deal.

"With regard to VTB, we think the market currently has no appetite for its placement, so soon after the previous SPO and the Bank of Moscow debacle, and it will take some time to mend bridges before a placement can take place," according to Rencap.

The government could also sell 10% stake in state-owned nanotechnology company Rusnano in a move which would mark the first privatization of one of the state corporations set up 2007-2008 to develop Russian technology. Rusnano, headed by Anatoly Chubais, Russia's 1990's privatization czar who went on to privatize Russia's power sector in 2007-8, could sell a stake to private investors in November-December, depending on market conditions, Vedomosti said March 15 citing Oleg Kiselyov, the company's deputy CEO.

Vedomosti also reports March 15 that Gazprom Media, which owns influential TV channel NTV and critical radio station Ekho Moskvy, could be IPOd in 2012. Prime minister Vladimir Putin in a series of pre-election articles had called for state companies to divest themselves of non-profile assets, including media assets, in a clear reference to Gazprom-Media. However, Gazprom-media vice-president Nikolai Senkevich said that the bank's owned Gazprombank was not considering an outright sale of the asset, which it regards as strategic.

In an interview published in the Gazprom magazine, Gazprombank board member Alexander Krasnenkov called Gazprom Media a sophisticated asset and said that Gazprombank would sell it as a non-core business and that management was working in this direction.

Casting a shadow over prospects for privatization, Izvestiya reports today that the government's most enthusiastic supporter of privatization, economy minister Elvira Nabiullina, could lose her job in an upcoming reshuffle. According to Izvestiya she could be replaced by Health minister Tatyana Golikova. Nabiullina's push for privatization of state stakes has been resisted by deputy prime minister Igor Sechin, who has said that privatization should be delayed until share prices recover past pre-crisis IPO prices, where applicable.