An auction to sell a blocking stake in Russian perishable cargo shipper Refservice has been cancelled, KIT Finance (RTS: CITB), the organizer of the auction, said in a statement according to Interfax.
The starting price for the blocking stake was 960.69 million rubles. The first bidding increment in the auction was set at 39.3 million rubles with subsequent increments of 50 million rubles.
Bids were accepted until December 14. Bidders had to make a deposit of 150 million rubles.
Russian Railways (RZD) (RTS: RZHD) has said the sale was intended to "elicit interest from market participants in industry assets."
"The minimum price of the sale exceeds the par value [which is common practice for auctions] and was determined by an independent appraiser," RZD said in a statement. The company added that it does not aim to sell the shares "at any price."
RZD President Vladimir Yakunin said at the end of November that there was a possibility the auction could be canceled.
The company's revenue to Russian Accounting Standards was 4.5 billion rubles in the first three quarters of the year, and net profit amounted to 766 million rubles, which already exceeds the figure of 763.8 million rubles for all of 2007. However, figures could decline
dramatically due to the drop in freight in the fourth quarter.
RZD handed over to Refservice 6,600 refrigerated railcars, three maintenance depots and two operating yards for refrigerated cars. The company has been carrying perishable goods since May 1, 2006.
The Russian government issued a directive in October to sell 25% plus one share in Refservice at auction.