Analyst: MegaFon’s ordinary stock likely to join MSCI Russia

MOSCOW, Oct 30 (PRIME) -- The MSCI is likely to assess the Moscow-listed MegaFon ordinary shares, not its Global Depositary Receipts (GDRs) as previously believed for the inclusion into the MSCI Russia index, investment company VTB Capital strategist Ilya Pitersky said in a research note seen by PRIME on Monday.

“Contrary to our previous understanding that the MSCI would be assessing MegaFon GDR for index inclusion, we now think that the MSCI will be assessing the Moscow-listed MegaFon ordinary shares, and so are changing our view on the potential inclusion of MegaFon into the MSCI Russia index,” Pitersky said.

“As a result, we i) do not expect MegaFon GDRs’ inclusion at any time and ii) think that MegaFon’s ordinary stock has a low probability of getting into the index in November. However, we think they are likely to be included at a later stage if the free float expands further.”

The MSCI Russia index will announce results of its semi-annual index review on November 13 with changes to take effect on December 1.

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