The proposal to combine the privatization of state stake in Novorossiysk commercial sea port (NCSP) with the sale of the shares owned by Transneft, is contained in the letter of Ministry of economic development the Ministry of transport of 17 October, “Vedomosti”. The state owns 20% of the largest Russian port holding, which includes Primorsky commercial port, while Transneft controls another 35.5 percent.
A letter to the MAYOR was a response to the request of the first Deputy Prime Minister Igor Shuvalov to work out the conditions and terms of privatization of state-owned stake in NCSP. On 11 October on the subject of Shuvalov held a meeting, which was attended by the Deputy head of Ministry of transport Sergey Aristov, the head of the Agency Dmitry Pristanskov, the President of “Transneft” Nikolay Tokarev, the owner and Chairman of the Board of Directors of the “Amount” Ziyavudin Magomedov, the CEO of RDIF, Kirill Dmitriev, the Vice-President of Russian Railways Andrey Starkov.
The representative of Shuvalov confirmed that the meeting. According to Federal officials, the state is set to sell its stake at the same time with a share of “Transneft”. It would be ideal, he said.
Discussed three options, said the party meeting, the joint selling packages or one by one (first “Transneft”, and then the state share or Vice versa). The representative of the Ministry of economic development reported that the method of privatization, the parameters of the transaction and its timing will offer the investment consultant. The Ministry just collects bids from banks.
NCSP stands in the privatization plan for next year. According to development Director of Portnews Hope of Malysheva, the Union of the controlling stake will increase the interest of investors. Senior analyst Raiffeisenbank Konstantin Yuminov notes that it can sell more expensive than both share separately. Current account assignments on the Moscow stock exchange 55.5% of NCSP are 62 billion rubles a control Premium may be 20-30%, says Yuminov.
As “Vedomosti”, the problem is that Transneft is directly responsible for only 10.5% of the port’s shares, another 25% through an equal joint venture with Summa group, Novoport Holding Ltd., which owns a 50.1% of NCSP. Another 5.3 percent of the port belongs to Russian Railways.
According to the partner of the Collegium of advocates “Yukov and partners” Mark Karatina, theoretically, to divide shares of NCSP between “Transneft” and “Amount” is easy. You can eliminate all of the joint company through which the partners control the port that will take about three months, said Karetin. Another question, adds Yuminov that such a deal probably can’t be implemented without approval “Amount.”
The representative of the “Amount” refused to comment on the proposal by the MAYOR. Summa against such an option, says one person familiar with the team managers, as time drags on. “The state package will be sold for a very long time, and the package of “Transneft” can be implemented much faster,” he explains.
“Transneft” has long wanted to break the partnership with the “Amount”, say “Vedomosti”. In 2013, the Tokarev was proposed to divide the assets of NCSP, oil to leave “Transneft”, all others — transfer the “total”. This year, Tokarev informed the President of Russia Vladimir Putin on the wish “Transneft” to sell a stake in NCSP. Blocking was proposed to buy the FUND, and 10.5% of the current shareholder, not putting his name. Putin instructed to deal with the offer “Transneft” Shuvalov, who is the MAYOR, the transport Ministry and the energy Ministry.
According to Uminova, even if the script, the MAYOR will be implemented, “Sum” will remain among the main contenders for the asset. The Federal official said that the company is interested in the port, but in Alliance with the FUND.
Representatives of the Russian direct investment FUND and DP World declined to comment. Transneft is aware of the proposal of the Ministry of economic development, said the representative of the company. “The proposal of the Ministry, we have nothing to [him] have not. We have only one desire — to sell its stake in NCSP,” he says.