Russian Railways approves sale of 18 subsidiaries and IPO.

By bne IntelliNews April 23, 2010
As announced by the press-service of the company, the state rail monopoly's Russian Railways (RZD) board of directors approved selling stakes in 18 of its subsidiaries and an IPO of 35% stake in TransContainer transportation major. The selection of the investors and minimal placement price is going to be additionally decided on by the board. To remind, it was previously announced by RZD that the company is planning to raise RUB 100bn (USD 3.32bn) from its subsidiaries until 2012. RZD plans to sell stakes in about 30 companies, the largest assets being 50% minus two shares in First Cargo Company and 35% minus two shares in TransContainer, as well as 50% minus two shares stakes in companies such as Elteza, RZD Stroy, RemPutMash and others. As reported, state support for RZD is going to amount to RUB 50bn in 2010, the same as in 2009. However, as recently announced by the head of the state rail monopoly Vladimir Yakunin, RZD might need another RUB 400bn in state support for the period of 2010-2015. The funds would be necessary for realizing the investment program for the coming 6 years. Investment program of RZD for 2010 stands at RUB 270.5bn, main priorities being development and renewal of infrastructure on main transit and export-oriented directions. Russian Railways is 100% owned by the government.

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