Page 167 - RusRPTMar23

may also enable VK to distribute cash, which is not unrealistic given recent asset sales that have reduced leverage and improved cash generation, Rencap said.
“It is unclear what options will be given to international shareholders, including those who cannot hold local stock. However, management is likely to be incentivised to enable conversion for all investors should the re-domiciliation and local listing take place,” Rencap added.
Overall, the potential re-domiciliation, combined with an increase in management’s economic interest and the stock’s undemanding valuation, increases the chances of VK shares’ re-rating in the near- to medium-term. On current estimates, VK trades on 3.7x EV/EBITDA 2023, Rencap reports.
167 RUSSIA Country Report March 2023 www.intellinews.com