ARMROSGAZPROM PLANNING IPO IN 2007-2008
Interfax News Agency
Russia & CIS Business and Financial Newswire
May 22, 2006 Monday
ArmRosgazprom is planning to hold an initial public offering (IPO)
in 2007-2008 in order to raise resources to develop the company,
Karen Karapetian, CEO and general director of the Armenian-Russian
company, said at a Monday press conference.
The company is planning to conduct an international financial audit
first, he said. ArmRosgazprom has charter capital of $280 million.
The Armenian government owns 45% of the company, Gazprom (RTS: GAZP)
has another 45% and Itera (RTS: ITER) has 10%. Gazprom is planning
to increase its stake in the company.
ArmRosgazprom shares are growing in price, Karapetian said. In any
case, Itera periodically brings up the issue of selling its shares
in the company and selling them at a price higher than par value,
Karapetian said.
Possible changes in the company’s owners will not have an influence
on ArmRosgazprom management, since it was agreed that there would
not be any changes in management, Karapetian said. “In this respect,
I don’t see any problems if Armenia decides not to increase its stake
in company charter capital,” he said.
Gazprom and the Armenian government signed in April a strategic
agreement for 25 years, establishing the strategic principles for
cooperation in gas-energy projects in the country.
The document deals with the acquisition by ArmRosgazprom from the
Armenian government of a 40-km section of the Iran-Armenia pipeline,
currently under construction, and the fifth power-producing unit
at Razdan thermal power plant. Also, according to the agreement the
Armenian government is obliged to give ArmRosgazprom the function of
client for the 197-km second section of the Iran-Armenia gas pipeline.
Preliminary purchase and sales agreements had to be signed by April
14, 2006 and the final transfer of right of ownership for these assets
should be carried out by January 1, 2007.
After the deal the Gazprom share in the ArmRosgazprom charter capital
will amount to a qualified majority of more than 75%.