Ministry says Sovcomflot privatization possible via IPO in 2020

MOSCOW, Nov 22 (PRIME) -- The Transport Ministry thinks that the government may privatize shipping company Sovcomflot in 2020 through an initial public offering (IPO), though a sale to a strategic investor is also possible, Deputy Transport Minister Yury Tsvetkov told reporters on Friday.

When asked whether the ministry sees Sovcomflot privatization possible in 2020, he said,” My answer is yes. It definitely can happen. Sovcomflot is always in a stand-by state for privatization, it is included in the privatization plan, and it is always ready.”

The option of selling a stake to a strategic investor is still on the table, but privatization is likely to be done on the open market. The government planned to inject part of the money received through privatization into the company’s capital to be spent on the Arctic projects without raising budget money, he said.

Sovcomflot is to submit an adjusted development program for the next few years to the board of directors soon, and it may include an IPO as one of the sources of financing of its investment, he added.

The government, which owns 100% in Sovcomflot, has been planning to privatize the company for several years. Currently, it plans to sell 25% plus one share. Economic Development Minister Maxim Oreshkin said in October that the government’s 2020 privatization plan includes Sovcomflot.

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