Expert does not expect Gov't to be too quick in decreasing its share in Sovcomflot
The state will most probably not be too quick to decrease its share in Sovcomflot, Aleksandr Mednikov, Executive Partner of law firm Jurinflot told IAA PortNews.
“The privatization of Sovcomflot has been under discussion for many years already and the IPO announcement is an important step. However, amid the pandemic situation the state is not likely to decrease its share in the company’s authorized capital very quickly. The privatization plan adopted by the Government foresees that the Russian Federation will keep at least 75% plus one share till 2022. In the coming years the state will hardly decide to loosen or especially cede control over Russia’s largest shipping group”, said the expert.
On 15 September 2020, PAO “Sovcomflot” announced its intention to conduct an initial public offering of ordinary shares of the Company and to list on the Moscow Exchange.
When commenting on Sovcomflot’s announcement, Anton Siluanov, Minister of Finance of the Russian Federation, said that the state share in authorized capital of Sovcomflot may be decreased to 75% plus one share according to a three-year privatization plan.
PAO Sovcomflot (SCF Group) is one of the world's leading energy shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as the servicing of offshore oil and gas production. The Group’s fleet comprises 147 vessels with a total deadweight of over 12.7 million tonnes, including vessels owned through joint ventures. More than 80 vessels have an ice class.
SCF is involved in servicing large oil and gas projects in Russia and around the world: Sakhalin-1; Sakhalin-2; Varandey; Prirazlomnoye; Novy Port; Yamal LNG, and Tangguh (Indonesia). The Group is headquartered in St. Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.
Related link:
SCF announces intention to float on the Moscow Stock Exchange>>>>
