Comprehensive M&A data with integrated detailed company information

Russia aims for small-stake investors for SCF: Reuters
Posted on Thursday, 18 May 2017 11:35
Russia is hoping to attract small-stake investors rather than a strategic or anchor investor to the privatisation of a quarter of the country’s largest maritime shipping company, Reuters reported.

State-owned Sovcomflot (SCF) claims to be one of the global leaders in the maritime transportation of hydrocarbons, as well as the servicing and support of offshore upstream oil and gas installations and equipment.

According to its website, its fleet comprises 146 vessels with a total deadweight of over 13.00 million tonnes serving large-scale energy projects both at home and abroad, including Sakhalin-1, Sakhalin-2, Prirazlomnoye, Novoportovskoye, Varandey and Tangguh.

Sovcomflot had revenue of USD 1.39 billion in the full year ended 31st December 2016 (FY 2015: USD 1.48 billion) and earnings before interest, tax, depreciation and amortisation of USD 706.50 million (FY 2015: USD 780.10 million).

The shipping line had net profit amounted to USD 206.80 million, compared to USD 354.50 million 12 months earlier, and a net adjusted debt ratio of 55.0 per cent at year-end (31st December 2015: 44.8 per cent).

Banking and industry sources told Reuters Russia is hoping to raise as much as RUB 30.00 billion (USD 528.78 million) from the sale of a 25.0 per cent stake to a wide range of interested parties.

In emailed comments to the news provider, the Economy Ministry confirmed: “There is a high interest seen from both Russian and foreign institutional investors."

However, strategic or anchor players are not invited as the government does not want a suitor which could threaten its control of the SCF.

One of the people told Reuters one of these will “ask for the right to be involved in the management, one day or another” and this is not what the shipper needs.

The news provider noted three quarters of the proceeds from the sale, slated to complete by the end of June, will go to the state budget and the remainder to develop SCF further.

© Zephus Ltd