UPDATE 2: Russia picks consultants for ALROSA, Bashneft, VTB sale

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ST. PETERSBURG, Jun 16 (PRIME) -- The Russian government appointed investment consultants for privatization of diamond mining giant ALROSA, oil company Bashneft and banking group VTB on Wednesday, Economic Development Minister Alexei Ulyukayev said Thursday.

“The chairman of the government signed an order on Thursday appointing consultants for ALROSA, Bashneft and VTB. They are Sberbank CIB, VTB Capital and Renaissance Broker respectively. We will now be waiting for reports from them correspondingly,” Ulyukayev said.

The minister said he does not rule out the sale of the assets on the market.

A 10.9% stake in ALROSA can be sold in July–August, he said. “I think we can do this in summer as well. It (ALROSA privatization) is the most prepared one.”

Ulyukayev separately said that privatization of shipping company Sovcomflot may be carried out via the Moscow Exchange as well.

First Deputy CEO of Sberbank Maxim Poletayev said that Sberbank CIB had already held a road show of ALROSA in Europe and the U.S. and there was quite a big investors’ interest in shares of the company.

Ulyukayev said that the periods from June till August and November–December will be the most advantageous for large-scale privatization.

“We think that we can close deals for all or the majority of assets this year. There are such possibilities in this period, before the summer vacations. I hope that at least one asset can make it to this window of opportunities. The rest – in the autumn window: November, December. This is a traditional time for placement on exchanges,” Ulyukayev said.

The minister said that while ALROSA and Bashneft are ready to be privatized in 2016, it would be better to postpone the sale of stakes in Rosneft and VTB to 2017.

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