MOSCOW, Aug 1 (PRIME) — The Russian government has approved the terms of a deal to sell a 75% minus two shares in Russias First Cargo Company, a 100%-owned subsidiary of state-owned railroad company Russian Railways, Russian Railways said in a statement Monday.
Under the terms approved by the government, the stake is to be sold at a public auction in a single lot. State corporations or companies with the Russian governments interest exceeding 25% or entities affiliated with Russian Railways are barred from bidding on the stake. Moreover, potential investors should have no losses or overdue debts in 2009 and 2010, as well as own over 15,000 cars.
The starting price of the stake, based on the estimates of an independent appraiser, is expected to be finalized no later than 30 days before the auction is announced.
In April, Russian Railways board of directors approved selling a 75% minus two share in First Cargo Company to a strategic investor, in a single lot at an auction. The deal was planned to take place by the end of September, Russian Railways President Vladimir Yakunin said.
Russian Deputy Prime Minister Alexander Zhukov said in April that an independent appraiser valued the stake in the cargo company at 115.5 billion rubles.
Established in July 2007, First Cargo Company is Russias largest operator of rail-based cargo transportation.
(27.6796 rubles U.S. $1)