First Deputy Prime Minister Igor Shuvalov, questioned the privatization of a 10.9% stake in VTB in 2017. He stated this during the international economic forum in Davos, reports Bloomberg.
“I don’t see the need to sell VTB in 2017. At “Rosneft” Igor Sechin from the very beginning were confident that investors will come. With VTB — another situation, it is unclear who can be an investor and whether it makes sense?” — he explained.
Yesterday President VTB Andrey Kostin said during the forum that the Bank’s management believes the opportunity for privatization in 2017 in the event of a change in the sanctions regime. “If the sanctions are changed or reduced, or will signal to the market and investors will not be afraid to engage in such transactions, of course, we believe that the sale of shares less than 11% is quite possible” — quoted by TASS.
The representatives of VTB carried out in Davos meeting with potential investors. “We’ll… talk with them, presenting our strategy, our performance over the past year, our plans for 2017. We hope that 2017 will be for the Bank more successful than 2016, from the point of view of financial indicators. It is therefore possible that such transaction can be implemented,” — said Kostin.
Privatization of VTB’s shares began in February 2011 as part of a major programme of privatization of state assets. Was sold 10 percent stake for $3.3 billion (more than 95 billion at the interbank rate for that period). Interest in the deal showed investors from around the world.
Now the state owns a 60.9% stake in VTB. In late 2014, after the Bank came under sanctions, Kostin said that the decline in the share of state in Bank to 50% plus one share, according to the Bank’s development strategy, is not planned until 2018 because of the “sheer unpredictability of the situation.”
In December 2015, the Ministry of Finance proposed to increase budget revenue through privatization of state-owned major Russian companies. In January 2016, the Minister of economic development Alexei Ulyukayev invited to return to the issue on privatization of VTB and Sberbank (7.58 percent were sold at an IPO in 2012 for $5.2 billion; as well as VTB, 2014, is under sanctions). It is hoped that this will improve the capitalization of the banking sector.
In June, Kostin in an interview raised the issue of the sale of shares of VTB in 2017, while stressing about privatization may be complicated by the sanctions. “With the lifting of sanctions, this problem would be solved easily. VTB group since 2007 when I started the privatization — brand market deals attracted $14 billion. We know how to do it. But, unfortunately, other terms and circumstances that really create a very serious problem,” he explained.
In October, Ulyukayev reported that “window” for the privatization of 10.9% VTB may appear in 2017 and this package is included in the privatization plan for 2017. Kostin, in his turn, said in an interview with Bloomberg that, in his opinion, to carry out the privatization of state banks better after the lifting of sanctions, which complicate the implementation of both basic variants of privatization sales to strategic investors and the deal on the open market.
Now the government is estimated at 10.9% of the voting shares of VTB at RUB 95 billion the Amount given taking into account the discount to the market.