Russia to place LUKoil shares on New York Stock Exchange
The Russian government plans to place about 50 mm LUKoil shares, equivalent to a little more than 6 % of the company share's capital, on the New York Stock Exchange, announced the chairman of the Russian Federal Property Fund, Vladimir Malin. According to Malin, each share is expected to be priced at $ 16 (19 euros), which would result in the state collecting a total of about $ 800 mm (952 mm euros).
A source in the Federal Property Fund went on to say that this transaction is so far viewed as the key privatisation project for 2001. A special project privatisation company will be formed for this purpose, which will first deposit LUKoil shares at the Bank of New York and then issue Level-III ADRs for these shares. The Morgan Stanley and Credit Suisse First Boston (CSFB) investment banks will be responsible for placing LUKoil shares at the exchange. This project has already been coordinated with every department concerned, with the exception of the Russian Finance Ministry.