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bne Invest
June 7, 2019 www.intellinews.com I Page 10
Russia's TCS Group to hold $300mn SPO on LSE
Leading Russian consumer lender TCS Group that operates Russia’s only pure online bank Tinkoff Bank plans an SPO of up to $300mn on the Lon- don Stock Exchange, by issuing new shares, the bank said on June 4.
TCS argues the capital is needed to ensure growth with 2019 loan portfolio growth outlook improved from 40%+ to 60%+. The rest of the 2019 outlook is left unchanged with net profit of RUB35bn, given new loan products growth will contribute to 2020 profits, while the dividend policy did not change.
"The management shared some long-term tar- gets such as $1bn net profit in 3-4 years, a new strategy may be presented in 2H19," BCS Global Markets commented during the TCS conference call on May 4.
"The management persuades a capital raising al- lows to grow in new products and face the regula- tion tightening. We believe circa 10% dilution [of capital] doesn’t look concerning, still the logic of the deal with dividend payments to be unchanged looks a bit strange," BCS analysts commented, seeing less diversification of revenues, given more focus on lending with quite volatile incomes.
TCS reported 25% year-on-year growth in IFRS net profit in 1Q19 to RUB7.2bn ($110mn), in line with consensus expectations of analysts.
The group posted record-high net profit in 2018 thanks to rapid growth in fee and commission income, and said in March it would sell $150mn worth of its GDRs or approximately 4.2% of its share capital through structures connected to the bank's founder Oleg Tinkov.
Maker of troubled Russian Sukhoi Superjet valued at $0.7bn ahead of possible merger
Sukhoi Civil Aircrafts that produces Sukhoi Super- jet 100 medium-range Russian passenger carrier is valued at RUB44.8bn ($688mn), Vedomosti daily reported on May 4 citing sources close to the state United Aircraft Corporation (OAK or UAC) which
is the mother holding of Sukhoi and other aircraft building assets.
A regional SSJ-100 airliner operated by Russian flag carrier Aeroflot crashed at Moscow Sheremetyevo airport on May 5 shortly after taking off for a regular flight to Murmansk. Out of 78 people on board, 41
people reportedly did not survive the crash.
Reportedly, Sukhoi and all of the civil aircraft assets of UAC could now be merged into a single company, worth about RUB100bn. This would include Irkut (valued at RUB56.8bn), which designed a medium- range jet MS-21 planned to be launched in 2021.
After the creation of the united company, UAC plans to sell the controlling stake to Russian state banks Sberbank, VTB, and VEB (Vnesheconombank), while hoping to attract private investors in the future.