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According to the Russian business daily Kommersant (16 November 2012), the price per global depositary receipt will range from USD 20-25 during its listing on London Stock Exchange. and Moscow. As a result, the whole of MegaFon is being valued at approximately USD 11-14 billion.

Swedish telecoms operator Telia-Sonera and MegaFon Investments (owned by MegaFon) will be selling interests. After the IPO Alisher Usmanov’s AF Telecom will retain over 50 per cent of the mobile operator, with TeliaSonera holding 25 per cent minus one share.

In addition, MegaFon CEO Ivan Tavrin will own 1.25 per cent of the mobile operator through the purchase of 7.75 million shares from MegaFon Investments within one month of the IPO.

 

As reported in The Guardian’s sister Sunday paper, The Observer on 18 November 2012, in an article entitled Alisher Usmanov in spotlight over Wikipedia profile, the advisers of oligarch and Arsenal investor Alisher Usmanov have tweaked his profile on Wikipedia, in particular in respect of his conviction by the Uzbek authorities and six-year prison sentence meted down in 1980.

This change  would appear to have been dictated by a desire to clean up his record for investors prior to the planned listing by MegaFon (in which Usmanov has a significant interest) on the London Stock Exchange, where another shareholder in the Russian mobile operator Swedish telco TeliaSonera plans to sell a 15 per cent interest for an estimated USD 1.7-2.1 billion.

The article provides more details on the charges that Usmanov faced and his contacts with the current Uzbek authorities. Nowadays Usmanov spends most of his time in Russia, where he has investments in precious metals, iron ore, steel, natural gas and various media, as well as a shareholding in the UK in the Premier League football club Arsenal.

According to recent articles in the Russian press, Usmanov may also end up playing a more significant role at nickel producer Norilsk Nickel, as he facilitates the dispute between the main shareholders Vladimir Potanin (Interros) and Oleg Deripaska (RusAl, Basic Element).

Usmanov is one of the richest men in the world, with a fortune valued at approximately USD 18.1 billion by Forbes in 2011.

UTair, with its head office in Khanty Mansiysk Airport,  owned 23 per cent by Khanty Mansiysk District administration, 19 per cent by Surgut City administration, 33 per cent by Russian shareholders and companies, 20 per cent owned by private foreign investors and 2 per cent by the Russian Federation, is considering a foreign listing in 2013.

The airline is seeking to raise USD 100-350 million that it will invest in a programme, aimed at developing and expanding the airline’s fleet by 88 aircraft (including 20 Airbus and 40 Boeing).

As reported by Reuters on 11 November 2012, MegaFon appears to have resolved its differences with the UK Listing Authority and will list on the London Stock Exchange before the end of 2012.

However, the mobile operator, owned by Alisher Usmanov (through AF Telecom and Telecominvest), TeliaSonera and Alfa Group’s telecoms arm Altimo, has still to complete a corresponding IPO prospectus.

Only recently it had been reported in the media that MegaFon had decided to shelve its IPO, allegedly owing to outstanding issues raised by the UK and corporate governance concerns about ownership changes. In addition, the offer price had been deemed too low.

According to Russian business daily Kommersant (8 November 2012), fertiliser and phosphate producer PhosAgro, which is 70.9 per cent owned by Andrei Guriev and his family, is considering different options for a further share sale, including a potential SPO. For the time being the company is waiting until the GDR price on the London Stock Exchange exceeds USD 14 per GDR, compared to USD 13.48 at present.

It is anticipated that Guriev may sell a 10.9 per cent interest and then use the proceeds to buy back shares from a new share issue and also to build an ammonia production facility.

According to the Russian press on 1 November 2012, the planned road show for the sale of the state’s 20 per cent interest in Novorossiysk Commercial Sea Port did not happen. This is due to a change of heart at the government, with First Deputy Prime Minister Igor Shuvalov now proposing the sale of the interest to a strategic investor, with a premium on the market price.

Investment banks claim that such a decision could adversely affect port operations and also reduce interest in the privatisation programme scheduled for 2013.

The port is 50.1 per cent controlled by a JV owned by Summa co-owner Ziyavudin Magomedov and Transneft. Shuvalov cited Summa as a potential strategic investor, and also Universal Cargo Logistics Holding, owned by Vladimir Lisin.

On 21 October 2012, a fortnight after Goldman Sachs withdrew as lead bank for the planned London IPO of MegaFon owing to corporate governance concerns, the mobile operator announced  a last-minute decision to shelve the listing for the time being, allegedly owing to the need to update its IPO prospectus in connection with the acquisition of a 50 per cent interest in mobile phone retailer Evroset.

According to other sources, however, MegaFon was forced to delay its planned road show, as the UK Listings Authority still hasn’t given its OK to the London listing.  Goldman Sachs pulled out of the whole deal owing to its concerns about the planned new structure of the mobile operator devised by MegaFon shareholder Alisher Usmanov.