Page 82 - RusRPTNov18

MRSK Volga RUB 0,1 383 0,012 10,5% 0,012 10,5% Medium
MRSK Siberia RUB 0,1 194 0,004 3,2% 0,004 3,2% Medium
MRSK South RUB 0,1 48 0,005 9,1% 0,005 9,1% Medium
MRSK Urals RUB 0,2 333 0,02 9,3% 0,02 9,3% Medium
Tomsk Distribution Co RUB 0,3 23 0,021 6,2% 0,021 6,2% Low
Tomsk Distribution Co RUB 0,4 4 0,017 4,8% 0,017 4,8% Medium pref
Kubanenergo RUB 70,6 346 0,928 1,3% 0,928 1,3% Low Source: Bloomberg, ATON Research
8.3.3 ECM news
The supervisory board of Moscow Exchange (MOEX) on September 27 approved the acquisition of an equity stake in Kazakhstan Stock Exchange (KASE), Russian TASS news agency reported. KASE, launched amid a global financial crisis in 2008, suffers from a lack of transparency and a number of barriers to entry for foreign investors, such as the need to hire brokers who possess knowledge of the local language. These obstacles make it highly unattractive for any foreign investor and deter them from properly setting up shop in the Central Asian country. Moreover, KASE is highly illiquid as local companies normally rely on bank funding, since there are no prospects for raising funds on the KASE. KASE, based in Almaty, has seen its equities trading average hit a mere $11mn this year. MOEX’s decision to make the stake acquisition follows an agreement signed between MOEX and KASE in April. It will acquire up to 20% of KASE in two stages by end-2019 for a total of RUB338mn (€4.44mn).
Russian second-tier retailer Lenta launched a 12-month GDR buyout programme worth RUB11.6bn ($177mn) or about of 10% of its freefloat, the company said on October 29. The buyout on the LSE will be managed by Credit Suisse.
The MSCI has announced that it is to increase the weight of Lukoil effective after the close of trading on 24 October as a result of the share cancellation announced earlier. During the last minutes of trading in Moscow, the MSCI announced it would account for Lukoil’s treasury share cancellation with the changes effective after the close of trading on 24 October. The MSCI is to decrease the number of shares for Lukoil ords (LKOH RX) to 750mn, from 850mn. The biggest surprise is the MSCI’s subsequent reassessment of LKOH’s FIF (Foreign Inclusion Factor, MSCI’s free float) as the agency increased it to 0.65, from 0.50. In order to account purely for the cancellation, the MSCI would only have increased the FIF to 0.60. As a result, LKOH’s FIF-adjusted market cap is going to be up +14.6%. And LKOH’s weight in the MSCI EM index is also going to be adjusted accordingly (to 0.72%). In the MSCI Russia index, the weight will be up +11.9% to 18.87%. We expect USD 420mn of passive inflows into the stock (3.5x combined 1-month ADTV). The change is to be effective after the close of trading on 24 October.
Russia's state oil pipeline operator Transneft could spend up to
82 RUSSIA Country Report November 2018 www.intellinews.com