Government allows Russian Railways to float 25–35% in Gefco

MOSCOW, Mar 5 (PRIME) -- The government has allowed state railway monopoly Russian Railways to sell 25–35% in French logistics company Gefco at an initial public offering (IPO), the government said in a statement published on Tuesday on the website for disclosure of legal information.

“To agree with the suggestion of the Economic Development Ministry that was coordinated with the Transport Ministry and Russian Railways to allow Russian Railways to sell common…shares in JSC Gefco…through an initial public offering amounting to no less than 25% of shareholder equity plus one share and no more than 35% plus one share of Gefco,” the government said.

Russian Railways owns 75% in Gefco, while Peugeot-Citroen Group (PSA) owns 25%. Gefco said in 2018 that it may hold an IPO at the Euronext exchange in Paris in 2019 if market conditions are good and all necessary approvals are received. The company also expected Russian Railways to cut its stake in it to less than 50%, and PSA may reduce the stake to less than 10%.

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