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Gazprom to offload another parcel of quasi-treasury shares
Posted on Thursday, 21 November 2019 11:55
A subsidiary of Gazprom is offloading 3.6 per cent of the listed Russian natural gas juggernaut in the public market, just four months after the disposal of a 2.9 per cent interest fetched roughly RUB 139.07 billion (USD 2.17 billion).

Gazprom Gazoraspredelenie intends to offer 850.59 million shares, all at the same price and in their totality – a partial sale is not envisaged – in the parent via the trading platform in Moscow today.

Gazprom closed at RUB 248.00 yesterday to value the 3.6 per cent stake at RUB 210.94 billion.

The oil giant is cashing in on its so-called quasi-treasury shares amid a rally that has seen its stock price jump 62.7 per cent year-on-year (21st November 2018: RUB 152.40) to a market capitalisation of RUB 5,871 billion yesterday.

Its first such sell-down earlier this year comprised 693.63 million securities at RUB 200.50 apiece, which represented a discount of 13.0 per cent to RUB 230.36 on 23rd July, the last unaffected trading day prior to the announcement.

The latest deal was not unexpected; a Raiffeisenbank analyst told Reuters the question is now about the scheme of the offering as last time it was one buyer.

Andrey Polischuk added if the shares are sold on the market, the oil giant’s price could fall “as the quantity is quite big”.

Gazprom bought back the package of quasi-treasury securities from Vnesheconombank in 2016, some eight years after the Russian state development bank bailed out state-owned entities amid the global financial crisis.

Zephyr, the M&A database published by Bureau van Dijk, shows the latest minority deal would be the third-largest targeting a Russian company announced in 2019 to date and is the 45th biggest for the country on record.

© Zephus Ltd