Page 82 - RusRPTSept19

Tatneft, ord. 9.20% 5.60% 7.20% 6.60%
Source: Bloomberg, Company data, VTB Research Cap
8.3.3 ECM news
Russia's natural gas giant and pipeline exports monopolist Gazprom could SPO an additional 3.7% of its quasi-treasury shares in the next few months to cash in again on a dramatic rally in the company’s share price in July after it doubled its dividend payout, Bloomberg reported citing unnamed sources. The stake, which reportedly will be sold to foreign investors through local brokers, would be worth RUB200bn ($3bn) at current valuations.
Russian metals giant Norilsk Nickel still plans to hold an initial public offering (IPO) of its Bystrinsky project, in, which it owns 50.01%, in 2020, a company representative told PRIME on August 7. Currently, the metals giant is the operator of the project. CIS Natural Resources Fund, established by Interros of tycoon Vladimir Potanin and ESN Group of tycoon Grigory Beryozkin, has 36.66%, and consortium of Chinese investors Highland Fund has 13.33%. Norilsk Nickel built the Bystrinsky mining and processing facility in a faraway part of Russia near the Lake Baikal at the end of 2017. Its reserves are estimated at 341mn tonnes of ore, which contains 2.3mn tonnes of copper, 9.5mn ounces of gold and 1,245mn tonnes of silver. The plant will refine 10mn tonnes of ore in 2020 after 23,000 tonnes of copper concentrate and 3.3 tonnes of gold concentrate in 2018.
Russian carsharing start-up Delimobil could hold an IPO at the end of 2020 on Moscow Exchange, Interfax reported on August 7 citing the head of Mikro Kapital Group Vincenzo Trani. Delimobil is one of about a dozen carsharing operators in Moscow that, along with Belka Car, You Drive, and Yandex.Drive, collectively control 94% of the market. Delimobil estimated that the carsharing market in Moscow already reached 12,000-13,000 vehicles in 2018. "As far as an IPO is concerned, we plan it on the Moscow Exchange, not abroad, and we plan it for the end of 2020," Trani said. Carsharing participants in Moscow could triple to 30,000 by 2025, according to a PriceWaterHouseCoopers forecast cited by RBC business portal in September 2018. The total car sharing and taxi market in 2017-2025 will grow 2.5-fold to RUB1.6 trillion ($24bn), as estimated by Sberbank CIB.
VEON announced the results of its mandatory tender offer for 42.3% of GTH shares to minorities. VEON will take up approximately 98.24% of GTH's total equity, which implies that 96% of minorities participated in the tender offer. It cost a total of EGP9,725mn (approximately $587mn) at EGP5.08 per share. Following the execution of the deal, as it takes its next steps toward simplifying its corporate structure, VEON intends to delist GTH from the Egyptian Exchange, and then transfer GTH's operating assets in Algeria, Pakistan and Bangladesh to VEON. It expects the restructuring to be completed by year-end.
VTBC reiterated its BUY rating on Yandex. It increased the target price by
82 RUSSIA Country Report September 2019 www.intellinews.com