Page 74 - RusRPTSept20

8.3.3 ECM news
The board of the Russian national air carrier Aeroflot Group has approved issuing 1.7bn additional shares at RUB1 per share, making 60% of the increased share capital, the company disclosed on August 6. As reported by bne IntelliNews, as part of the state drive to support Aeroflot in the coronavirus (COVID-19) crisis, the carrier was allowed to issue additional shares of up to RUB50bn-100bn. In current prices of about RUB82 per share the total value of the new placement stands at RUB139bn ($1.9bn), much larger than previously reported. Sberbank CIB on August 6 treats this figure as the maximum possible placement, "whereas the actual amount of shares placed will depend on the price and the amount of capital the government will be ready to provide to keep its stake in the company." The bank believes that the final price and volume placed by the company still depend on final details of the deal.
Rosneft disclosed yesterday having bought 1.9 mln shares and GDRs in the last week of July. The bulk of the purchases were conducted on Friday, July 31 (1.4 mln shares and GDRs, including 1.1 mln shares on the Moscow Exchange). Our view: During the first month of the program, which began on March 23, the company had been buying on average 1.4 mln shares and GDRs per day. However, in late April the pace fell dramatically, to less than 0.2 mln per day on average. If the unexpected increase in activity is sustained, this could provide additional support for the shares. However, it is probably too early to draw any conclusions, as total purchases for July (just above 4 mln shares) are not that different from the May-June levels of 2-5 mln shares. The approved buyback program is for up to 340 mln shares until the end of this year (3.2% of total shares outstanding). So far, the company has bought back 42 mln shares (12% of the program limit, almost equally split between shares and GDRs) for $182 mln (for an average price of $4.4 per share), based on our calculations.
PFR Partners Fund Ltd, the consortium of investors holding a 19% stake in Russia's largest foreign-owned utility major Enel Russia, has been split, paving way for individual minority shareholders to sell their stakes, Sberbank CIB writes on August 18. As reported by bne IntelliNews, Enel Russia most recently maintained its top dividend policy in the sector despite 1H20 results being weak as a result of the coronavirus (COVID-19) crisis. The company remains one of the analysts' top picks in the Russian utility sector. The breakdown of the stakes in Enel Russia shows Macquarie with 5.8156% and Russian Direct Investment Fund (RDIF) with 5.5387%, while the remaining portion is attributable to AGC Equity Partners. "It had been reported previously that Macquarie is considering disposal of its stake, so the split of the consortium may pave the way for that," Sberbank CIB reminds.
Russia's largest gold miner Polyus Gold plans to offer the shareholder of its subidiary Lenzoloto either a buyout or share exchange offer, according to the reports by Interfax. Polyus moving to consolidate its mining asset is in line with a larger consolidation trend in Russian gold industry boosted by high prices. As reproted by bne IntelliNews, Russian tycoon Roman Abramovich and partners were reported to be selling 40.06% in the Highland Gold gold mining asset to Fortiana Holdings of Vladislav Sviblov. At the same time Russia's fourth-largest gold miner Yuzhuralzoloto (UGC) is staging a takeover of peer miner Petropavlovsk in which it holds 22.4% stake. The redemption price proposed by Polyus may amount to RUB19,567 per common share and RUB3,607 per preferred share. Should all Lenzoloto shareholders decide to
74 RUSSIA Country Report September 2020 www.intellinews.com