OREANDA-NEWS. November 21, 2012. Renaissance Capital* announces the completion of a competitive process to select a purchaser for 100% of common shares in SG-trans OJSC. Renaissance Capital was appointed by the Russian Federation as the sole organiser and executor of the process, through which the state is divesting its 100% ownership stake in SG-trans’s share capital.

Renaissance Capital organised a highly competitive process, involving a large number of strategic and financial investors, which culminated in competitive, open negotiations to determine the highest achievable price for the asset, and select a buyer. Four companies participated in the process: OJSC JSFC Sistema, RusTransKom LLC, Spetsenergotrans JSC, and TransEvroGaz LLC. The highest price of RUB22.77bn was put forward by OJSC JSFC Sistema. This exceeded the starting price by RUB12.67bn.

The process of selling SG-trans shares was launched in October 2011, with a number of major companies expressing interest in the asset. On 20 August 2012, the second stage of the process was initiated through placement of a relevant announcement in Vedomosti newspaper. Potential buyers had the opportunity to conduct independent financial and legal due diligence on SG-trans, and study the report of an independent appraiser.

The buyer, the price and other material terms of the transaction are subject to obtaining approval through an order of the Government of the Russian Federation.

* - According to the order of the Government of the Russian Federation, as of September 27th 2011 (№1679-p), Renaissance Broker LLC is the only executor of state order for the organization and execution on behalf of the Russian Federation of alienation of the state owned ordinary shares of SG-trans.