Aeroflot will be privatized by 2020

Aeroflot will be privatized by 2020

Moscow. September 14. The Ministry of economic development will not include “Aeroflot” in the privatization plan for 2017-2020 years, said the Director of Department of corporate governance Ministry of economic development Oksana Tarasenko.

“The company must remain under the supervision of the state,” she said in an interview with Bloomberg.

Now the state Aeroflot 51.17% stake. In 2014, he published a presidential decree authorizing the dilution of government stake to 50% + 1 share. At the same time, the Agency was planning a transaction in which simultaneously with the placement of a small emission, erodes state share to the control, was supposed to sell quasiclassically (belonging to the “daughter” of “Aeroflot”) package and perhaps a package of state Corporation rostec – only 8-9% of the shares at $200-300 million, “Aeroflot” held a selection of legal advisers and investment banks to accompany the “road map” of privatization (respectively Debevoise & Plimpton and Sberbank CIB JP Morgan), but these plans were not realized. In the second phase of the “road map” of privatization – in 2016-2020 – proposed sale of a larger stake to 25% – “among a wide circle of investors”, stated in the presentation of the Agency.

Relevant agencies – Ministry of transport has said repeatedly that the loss of state control in “Aeroflot” the industry faces significant risks, citing the example of stop “Transaero” when the government put on “Aeroflot” function for conveyance of passengers of bankrupt competitor, which would be impossible in a situation with a private company.

Tarasenko also confirmed that the Ministry considers it possible to set the bar of dividends for state companies at least 50% of the net profits for next three-year budget period – this proposal came out, the Ministry of Finance and economic development Minister Andrei Ulyukaev has said that in the current budgetary circumstances, the Ministry will support this proposal.