Business Watch
Etalon Group, a real estate developer, is the latest Russian company beating a path to London financial markets. the company announced plans today to raise around $500 million in a London IPO.
A source close to the deal told Reuters the company would start its roadshow on April 4, closing the book on April 14.Etalon said Credit Suisse, Renaissance Capital and VTB Capital will be joint bookrunners of the offering.
Greatly Reduced Prospects for Equity Issuance in 2011 on Global Uncertainties
By Chris Weafer
Chief Strategist, Uralsib
Record year for global IPOs. New equity issuance on global markets over the first two months of 2011 is at a record high of $26 bln. But current global macro and geopolitical uncertainties have considerably dulled prospects for 2Q11 at least.
Encouraged by widespread consumer demand and rising world food prices, leading Russian agroindustrial holding Rusagro is planning to raise $300 million in a London IPO.
In a deal which may take six months to clear regulatory approvals Sberbank today agreed to acquire 100% of Russia's oldest investment bank, Troika Dialogue for $1billion. Troika's two shareholders - founder Ruben Vardanian with 63.6% of shares and South Africa's Standard Bank with 36.4% - have been negotiating the deal for months.
Russia's latest state privatization programme kicked off to a flying start when VTB, the country's second biggest lender after state savings bank, Sberbank, raised $3.3 bn (96 bn roubles) from the sale of a 10% stake. The sale, at market price, shrugged off doubts about investors apetite for Russian equities after three IPO's were pulled last week.
As a Siberian court dismissed a suit by Oleg Deripaska's aluminium group Rusal against Norilsk Nickel AGM, the Arctic miner sweetened its bid to buy out Rusal's 25% share in the company by $800 million. An offer of $12 bn was rejected by Rusal last December although minority shareholder Mikhail Prokhorov was said to favour further negotiations.