OREANDA-NEWS. April 25, 2011. The Board of Directors of Russian Railways has preliminarily approved the sale of a single stake of 75% minus 2 shares in the First Freight Company, reported the press-centre of Russian Railways.

The sale will be to a strategic investor at an auction and is scheduled for the third quarter of 2011.

Alexander Zhukov, Russian Deputy Prime Minister and Chairman of Russian Railways’ Board of Directors said on Tuesday that the minimum price of the stake will be 115.5 billion roubles, which corresponds to the market valuation of shares as determined by the independent valuer KPMG.

According to Zhukov, legal entities which are non-state corporations registered in Russia, and which have a stable financial position and experience of operating rolling stock, will be able to participate in the auction.

Zhukov also said that the Company’s Board of Directors had preliminarily approved the sale of 25% plus 1 share in TransContainer at a public auction. This stake is valued at 10.722 billion roubles. The sale is planned for 2011.

TransCreditBank will organiser both auctions.

In addition, the Board of Directors preliminarily approved the sale of 75% minus 2 shares in four subsidiaries: Zheldorremmash, Vagonremmash, the Moscow Locomotive Repair Plant and the Novosibirsk Switch Works.

These companies will be sold during 2011-2012.

"The sale of shares in subsidiaries is part of rail sector reform and will further promote competition in the industry," said the President of Russian Railways Vladimir Yakunin.