Email Facebook Twitter

EXCLUSIVE: Aminex CEO says 'Institutions are delighted' with Zubair farm-out terms
EXCLUSIVE: InfraStrata continue to negotiate with major gas companies and institutional investors

UK Money News

VTB Capital values Russia's En+ at $9 bln-$12 bln ahead of IPO

Fri, 6th Oct 2017 21:18

MOSCOW, Oct 6 (Reuters) - VTB Capital, a coordinator of the planned initial public offering of Russia's En+ has valued the group's total equity at between $9 billion and $12 billion, according to a VTB report obtained by Reuters. En+ Group, which manages Russian tycoon Oleg Deripaska's aluminium and hydropower businesses, is planning an initial public share offering (IPO) in London and Moscow. It has not said how much of its equity it plans to float but has said it hopes to raise $1.5 billion from the offering. The listing will be the first major IPO of a Russian company in London since 2014, when the West imposed sanctions on Russia over its actions in Ukraine, and is seen as a test of investor appetite for Russian assets. En+ and VTB Capital declined to comment. Sberbank SIB, another of the coordinators, has separately prepared several different scenarios to investors that would determine how it values En+, according to two financial market sources. The sources told Reuters that the scenarios outlined suggested Sberbank CIB was leaning toward a fundamental value of En+ of around $10 billion. However, Anton Malkov, Sberbank CIB managing Director, told Reuters that the bank had not set a definite value on the company. "The assumption that Sberbank CIB is valuing the company at around $10 billion is incorrect," he said. "The base amount of the transaction totalling $1 billion has been recorded, while it is the market that will determine the equivalent in terms of the percentage of the charter capital," he added. The base amount of the deal mentioned by Malkov does not include Singapore's AnAn Group, a strategic partner of China's CEFC, which agreed to purchase global depository receipts (GDRs) during the IPO for $500 million. The IPO will be split between new and existing shares. Along with VTB Capital and Sberbank SIB, other global coordinators and bookrunners for the deal include Citigroup, Credit Suisse, JP Morgan and Merrill Lynch. BMO Capital Markets, Gazprombank, Societe Generale and UBS are acting as joint bookrunners, while Atonline is acting as MOEX bookrunner of the offering. (Reporting by Olga Popova, Anastasia Lyrchikova and Polina Devitt; Writing by Polina Devitt; Editing by Katya Golubkova and Susan Fenton)

(c) Copyright Thomson Reuters 2017. Click For Restrictions -

Back to UK Money News

Share Price, Share Chat, Stock Market news at
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.