RS Brief news Sale of Sovcomflot: Privatisation in Action

Sale of Sovcomflot: Privatisation in Action

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The state is planning to sell its stake in Sovcomflot, and in early August Deutsche Bank was selected to organise the deal. The sale of a 25% stake minus one share will be carried out in accordance with the Russian government plans to privatise a number of state assets. Pursuant to these plans, in late June the government signed a resolution on the privatisation of 50% minus one share in Sovcomflot from the government's 100% stake in 2012-13, and the termination of state participation in the authorised capital of the company by 2016. According to Deputy Transport Minister Viktor Olersky, the privatisation of 25% minus one share will take place no earlier than late this year or early next year.

Sovcomflot was transformed into a joint stock company in 1993 and is one of the world's leading shipping companies, specialising in the transport of crude oil, petroleum products and liquefied gas. According to the IFRS, the net income of the company increased by 36.3% in Q1 2012 to 45.4 million US dollars. The company has representative offices, subsidiaries and crewing offices in Moscow, St Petersburg, Novorossiysk, Vladivostok, Odessa, Madrid, London and Limassol.

The company's fleet currently consists of 156 vessels with a total deadweight of 11.78 million tonnes. The average age of the fleet is 7.2 years, with the global average standing at 12 years. The company employs 5,770 sailors and a port staff of 2,213. RS