Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

VEB Mulls Big Stake in Raspadskaya

The potential sale of Raspadskaya to Vneshekonombank, reported Tuesday by Interfax, shows that the coal producer's shareholders enjoy "significant political leverage," according to Troika Dialog.

VEB, chaired by Prime Minister Vladimir Putin, may buy a combined 80 percent stake in Raspadskaya from company management and Roman Abramovich's Evraz Group for as much as $5.3 billion, a more than 30 percent premium to the market price, Interfax said, citing people with knowledge of the plan. The bank previously helped fund Evraz in 2008, lending the steelmaker $1.8 billion during the financial crisis.

"Surprisingly, VEB also stands ready to provide financial support to Evraz Group in good times," Troika analyst Sergei Donskoi said Wednesday in a note. "The principal shareholders of the company still enjoy significant political leverage."

A week ago, the Raspadskaya board of directors moved in favor of paying out generous dividends for the first half that represent virtually all of net profits, which analysts say is evidence that the main shareholders' stakes are soon to be sold.

Raspadskaya stock traded at 172.30 rubles on the MICEX stock exchange at 5:26 p.m. Moscow time Tuesday but shot up to 189.02 rubles by 5:43 p.m., 8.9 percent above the previous day's closing price, on news of the possible sale of the company.

"The prospects for Raspadskaya minority shareholders remain murky, as VEB, to all appearances, will not be offering to buy up their shares at $8.50 each," UralSib Capital analyst Dmitry Smolin told Interfax on Tuesday.

(Bloomberg, Interfax)

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more