Russian Railways approves final sale of Freight One

By Freddie Pierce
Follow @Ella_Copeland Rail monopoly Russian Railways has approved the sales of its remaining 25percent stake in Freight One for $1.6 billion. The sale...

Rail monopoly Russian Railways has approved the sales of its remaining 25 percent stake in Freight One for $1.6 billion.

The sale completes a takeover by billionaire Vladimir Lisin’s Independent Transport Company, which already owns 75 percent of Freight One following an earlier purchase from Russian Railways at an auction in 2011 for $4.2 billion

“Yesterday, after the decision by the board of directors, which summed up the results of the tender [for the remaining blocking stake in Freight One], we plan to get 50 billion rubles [$1.6 billion] and I have signed a corresponding contract,” Vladimir Yakunin, CEO of Russian Railways told the press on Thursday.

Russian Railways chose Independent Transport Company as the buyer for Freight One in a tender held in October 2012. 

On a statement released on their website, Russian Railways claimed the sale of freight one will be ‘one of the biggest privatization deals in Russia’s modern history.’

On Wednesday, the Board of Directors also approved the sale of 75% minus two shares of Zheldorremmash, Russia’s largest producer of locomotives and rail equipment, according to an online statement. The sale of the company was finalized following ’competitive bids in accordance with a decision of the Board of Directors on 27 June 2012 and a decree of the Russian Government dated 26 June 2012.

The announcement that bidding would take place for a sale and purchase contract in Zheldorremmash shares was announced on 14 August.’

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