EBRD, IFC may buy Russia’s central bank stake in MICEX

The European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) may buy part of the Russian central bank’s stake in the MICEX, Russia’s largest stock exchange after its merger with the rival RTS, Vedomosti business paper reported on Monday.

“We have received requests from large international financial institutions, such as the EBRD and IFC, and the central bank is prepared for this but it is early to speak about these investors’ stakes,” Vedomosti quoted Central Bank First Deputy Chairman Alexei Ulyukayev as saying.

After the MICEX’s merger with RTS, the central bank will possess about 22 percent in the MICEX and the merged exchange’s capitalization may hit $5-7 billion, which could value the regulator’s stake at $1.1-1.5 billion, Ulyukayev said.

The central bank is expected to cut its stake in the MICEX during the merged exchange’s IPO and the sale of its shares to investors, Ulyukayev said.

“We’ll not exercise our right to acquire a corresponding stake during the IPO and this will automatically cut the central bank’s shareholding. If a 50 percent share package is offered for the IPO, our stake will fall from 22 percent to 14 percent,” Ulyukayev said, adding that the regulator would completely withdraw from MICEX equity in the medium-term.

 

MOSCOW, June 6 (RIA Novosti)

Leave a comment