The Russian government has approved the sale of a state-owned 75-percent stake (- 2 shares) in Freight One at a public auction, the Russian Railways said.
According to the Russian Government’s order (July 28, 2011 № 1315-p), any non-state corporation, Russia-registered entity, having strong financial position and experienced in rolling stock operation can be admitted to the auction. The minimum price of the stake will be determined on the basis of an independent appraiser’s report, not later than 30 days before the auction.
"The sale of the majority stake of Freight One will be a key element of the RZD’s reform of cargo transportation segment. As a result, a largest private player will emerge on the freight traffic market, while RZD could get considerable funds to finance its investment program, " RZD President Vladimir Yakunin was quoted as saying.
The auction is scheduled for the end of this year. Bidders will have to agree their participation with the Federal Antimonopoly Service of Russia.
JSC Freight One is a leading provider of rail transportation in Russia. The Freight One was formed in 2007 by rail monopoly Russian Railways (RZD) that holds a 100-percent stake in the company. Currently, FO owns and operates a fleet of over 200,000 units of rolling stock. In 2010, the rail operator carried 302,3 million tons of different cargoes. The Company’s net income to IFRS soared 4.5 times to RUB 19.9 billion, revenue increased by 44.5% year-on-year, to RUB 103.5 billion rubles.