The Russian Federation will take part in Aeroflot's additional issue with funds from the National Wealth Fund (NWF), and the volume will depend on the market's participation in this deal, Russian Finance Minister Anton Siluanov told reporters.
“We plan to keep our share (in Aeroflot (MCX: AFLT)) at least at the current level. We plan to see how the market will react to the additional issue, how willing investors will be to participate in this additional issue, and, accordingly, we will also place the necessary amount of our resource. It is planned to use the funds of the NWF for this, “Siluanov said.
As reported, Aeroflot shareholders had previously approved an additional issue of up to 1.7 billion shares. The papers will be placed by open subscription. The fundraising through the SPO is aimed at “improving the liquidity and financial strength of the group, as well as supporting the recovery of operations to pre-crisis levels,” the company said, referring to the crisis over the COVID-19 pandemic.
VTB (MCX: VTBR), the Russian Direct Investment Fund and Promsvyazbank previously announced the possibility of investing in Aeroflot shares. At the same time, according to the government's order, following the results of the placement, the state's share in Aeroflot should be no less than the current 51.17% (the holder of the stake is the Federal Property Management Agency). It turns out that the state should buy out a little more than half of the additional issue.
SPO parameters, including volume and placement price, have not yet been announced. Aeroflot deputy general director Andrei Chikhanchin said earlier that “an additional issue of up to 1.7 billion shares is technically possible, but this does not mean that we will place all these shares.” Analysts believe that in order to attract private investors to the SPO, Aeroflot will have to offer a price with a good discount to the market.
Earlier, against the backdrop of the crisis due to the pandemic, Aeroflot attracted loans from Sberbank for 70 billion rubles. under a five-year state guarantees, as well as several preferential (with a subsidized rate) loans under the anti-crisis state program. In addition, the companies of the group received 7.9 billion rubles. so-called COVID subsidies from the Federal Air Transport Agency – to partially cover fixed operating costs.
In addition to the Rosimushchestvo package, 3.5% in Aeroflot belongs to the state corporation Rostec, 5.1% belongs to individuals, 0.1% belongs to the company's management, another 4.3% belongs to the treasury package, and 35.7% belongs to institutional investors. …