MOSCOW, Sep 6 (PRIME) — State-owned railroad company Russian Railways has set the starting price for auctioning a 75% minus two share stake in its wholly-owned subsidiary First Cargo Company at 125.375 billion rubles, according to Russian Railways documents published in Russian business daily Vedomosti Tuesday.
Russias TransCreditBank, which is the organizer of the sale, is to hold the auction on October 28. Bids are to be accepted from Wednesday through October 14. The bid increment was set at 500 million rubles, while the first bid increment was set at 125 million rubles. In late August, the Federal Antimonopoly Service (FAS) cleared six domestic companies to bid for the stake. The companies are Transoil, Independent Transportation Company, Neftetransservis, and Industrial Transportation Company Skovorodino, as well as Moscow-based Sevtekhnotrans and Novaya Perevozochnaya Kompaniya (NPK). Sevtekhnotrans and NPK are units of private Russian rail freight carrier Globaltrans, while Transoil is controlled by Russian businessman Gennady Timchenko.
Established in July 2007, First Cargo Company is Russias largest operator of rail-based cargo transportation.
(29.3436 rubles U.S. $1)