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bne Invest
May 17, 2019 www.intellinews.com I Page 11
Russia's largest grain freight operator RusTransCom to sell to VTB Bank instead of IPO
Russian rail operator RusTransCom, specialising on transportation of grain, mineral fertilisers, and tim- ber, will sell a controlling stake of 95.72% to Russia’s second-largest bank VTB Bank, Reuters reported citing unnamed market sources on May 16.
Previously the company announced plans to hold an IPO at the London Stock Exchange hoping to raise $300mn, as reported by bne IntelliNews,
but later called the offering off after receiving "several proposals regarding private equity trans- actions, which are better aligned with the Group’s development strategy.”
Now reportedly VTB could acquire the company that is valued at $1.36bn-$1.6bn, although the amount of the deal has not been undisclosed. VTB already controls major grain assets such
as 50% in the state United Grain Company (OZK) and Novorosiysk Grain Terminal (NZT).
The bank previously said it would develop grain export infrastructure together with the state. Russia, set to become world's largest wheat exporter in the world for the third year in a row, is now earning some $20bn a year from grain exports – more than it earns from arms exports.
Molesto Investments of Konstantin Sintsov and Konstantin Zasov holds 95.7% in the freight operator planned to offer part of RusTransCom shares. RusTransCom operates 68,000 gondolas, more than half of which for the transportation of grain. In 2018 the company transported 60.7mn tonnes of grain, made revenues of RUB51.5bn, net profit of RUB11.6bn, and Ebitda margin of 60%.
Russia's Gazprom delivers surprise doubling of 2018 dividends
The management of Russian state gas major Gazprom recommended a RUB16.6 per share dividend for 2018, which is more than 1.5-fold higher than the previously suggested RUB10.43 per share, making a potential total payout of RUB393bn ($6bn) to be approved by the board and the shareholder meeting on June 28.
Gazprom shares jumped by over 10% on
the announcement on May 14, bringing the capitalisation up to RUB4.3 trillion in Moscow. The proposed dividend accounts for 42% of the company's RAS (Russian Accounting Standards)
net profit, which is above Gazprom's dividend policy of 17.5%-35% payout.
Gazprom doubled down on its previous April dividend announcement, which made the biggest dividend payout in Gazprom's history, record-high total divi- dend for Russia, and the first time that the per-share dividend payout has climbed into double-digits.
The proposed payout in terms of IFRS net profit would increase from 17.5% in April's proposal to 27%, which brings it closer to the state-ordered mandatory payout of 50% of profits.