Rostelecom to sell shares in 2014

Russian operator Rostelecom may sell up to $1.4 billion worth of shares in 2014 as it works to reduce its debt, Reuters reports.

The sale of a 15% stake in a secondary public offering (SPO) has been provisionally planned for the second half of 2014, sources close to Rostelecom told a local newspaper.

The company would reportedly offer shares at no less than 120 roubles (around $3.66) each.

Analysts at the Bank of America Merrill Lynch, said: “While greater liquidity would be positive, we think, the SPO price of 120 roubles is below the level of the recent buybacks (136 roubles and 124 roubles), suggesting certain value dilution for shareholders.”

Rostelecom has never denied the possibility of selling its shares, but a spokeswoman for the company told reporters that details of a share sale were yet to be discussed by the board.

Earlier this year, Rostelecom sold a 2.7% stake to Deutsche Bank and Russia’s state-backed private equity investment firm, the Russian Direct Investment Fund (RDIF).

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree