MegaFon appoints senior UK figure to help raise investor confidence ahead of IPO

19 November 2012 |


Russian operator MegaFon has appointed the former UK minister and Marks and Spencers chairman Lord Paul Myners as an independent non-executive director, as it hopes to raise investor confidence ahead of its listing on the London stock exchange.

The company is aiming to raise as much as $2.1 billion in a London listing but the move has previously faced delays and controversy. In particular, there were concerns that MegaFon’s owner, oligarch Alisher Usmanov, plans to make Megafon part of a larger umbrella company he controls with two partners, according to the Financial Times.

MegaFon had originally planned to hold the listing in October, but was forced to delay because it had not received approval from the UK Listing Authority. This was due to concerns that Goldman Sachs, the lead bank on the offering, had pulled out days before it was due to begin.

Lord Myners served as treasury minister for the Labour government under Gordon Brown, and has also served as a director at O2 and Orange. His presence on the Megafon board could help enhance the credibility of its IPO.