Agency WPS
The Russian Business Monitor (Russia)
September 8, 2004, Wednesday
THE STATE WILL TRY TO SELL A 25.5% STAKE IN SIBERIAN AIRLINES AGAIN
The state will make another try to sell Siberian Airlines. The
blocking interest in the company is included into the additional
plan of privatization for 2004. Experts say that the stake may be
interesting primarily for managers of Siberian Airlines and large
greenmailers and estimate it at $20-30 million.
Siberian Airlines is Russia’s second largest air company after
Aeroflot. In 2003, it transported 3.4 million passengers. Siberian
Airlines operates 34 Tu-154 airplanes, 12 IL-86s, two Tu-204s and
two Airbus-310s. Siberian Airlines has controlling interest in the
Armenian air company Armavia that operates four A320 airliners. In
2003, revenue of Siberian Airlines according to international
standards amounted to about $370 million and net profit amounted
to $1 million. Russian Federal Property Fund has 25.5% of company’s
shares and 56.8% belong to Natalia Fileva, wife and senior deputy of
company’s General Director Vladislav Filev.
Experts say that management of Siberian Airlines is the main candidate
for the stake. Michael Boboshko, director of the analytical department
of Sovlink company, says that Western investors will hardly risk
investing in a rather closed company like Siberian Airlines. Russian
investors will not participate in the auction because they are
interested in establishment of control. Natalia Zagvozdina from
Renaissance Capital also says that given an owner of controlling
interest other air companies will hardly be interested in a blocking
stake. A source in Aeroflot states, “Business of Siberian Airlines
is stringently controlled by the management and I do not think that
acquisition of a blocking stake will be interesting for Aeroflot.” Last
week it was reported that Aeroflot proposed the Economic Development
and Trade Ministry to reassign state-owned shares in regional air
companies to Aeroflot in exchange for increase of the state interest
in Aeroflot. A spokesperson for Aeroflot refused to say if Siberian
Airlines was among the candidates for takeover.
Boboshko from Sovlink estimates 25.5% of Siberian Airlines shares
at $30 million. Roman Trotsenko, Chair of the Board of Directors of
Industrial Development investment group, says that debts of Siberian
Airlines amount to about $200 million and the state-owned stake may
cost $20 million.
Source: Vedomosti, September 07, 2004