Morgan Stanley Bank Ltd was selected as the sole agent for organization and execution of the sale of shares of Sovcomflot (SCF Group) owned by the Russian Federation. The corresponding order of the Russian Government is dated June 29, 2011.
Rosimushchestvo was ordered to sign an agency agreement with Morgan Stanley Bank Ltd. The securities sale must be held at a price not lower than the market price determined on the basis of an assessment report of the market value of shares, prepared by an independent appraiser, the order said.
According to the agency agreement, the bank will provide the expert opinion of a self-governing organization of appraisers according to a report on the evaluation of market value on its behalf and at his own expense. If necessary, the agent must on its own behalf and for own account get third parties involved as advisers. The agent will report on the possible buyers of shares and their proposals, and other terms of the shares sale, to the Ministry of Economic Development and the Federal Property Management Agency.
Noteworthy, on June 30, 2011, at the Annual General Meeting of stockholders Elena Titova, President & Board Chairman of Morgan Stanley Bank Ltd., was elected, among others, to the Board of Directors of Sovkomflot.
St.Petersburg-headquartered Sovcomflot (SCF Group), is the biggest shipping company in Russia, ranks the fifth top tanker company in the world. The 100-percent state-owned company specializes in global transportation of crude oil, petroleum products and other energy sources. The Group's fleet comprises 156 vessels of total deadweight of nearly 12 million tons, the average age of the tanker fleet is 6,6 years. SCF’s newbuildings program includes 15 vessels of total deadweight of about 1,73 million tons.
In line with the federal property privatization program for 2011-2013, the government stake in SCF Group will be reduced to 75%, and then (until 2013) - to 50% plus one share. Earlier, in June 2011, First Vice-Premier Igor Shuvalov said he did not rule out the privatization of Sovkomflot might be postponed until 2012.