Russian phone firm in pounds 726m UK listing
Thursday 10 February 2005
The secondary listing in London, of a 17 per cent stake, valued Sistema at $8.2bn as the dollar-denominated issue was two-and-a-half times over- subscribed. The float values Vladimir Evtushenkov's remaining 65 per cent stake at more than $5bn, making him one of Russia's 10 richest men.
Analysts said the listing showed global investors were keen on Russia, despite the attack by the Kremlin on Yukos, formerly Russia's biggest oil company. Unusually, Sistema is a play on the consumer sector, whereas most international interest has been in the country's bountiful natural resources.
Eric Kraus, the chief strategist at Sovlink Securities in Moscow, said the float "shows that Western portfolio investors are now buyers of Russian assets". It is understood that Sistema shares were bought not just by specialist emerging markets funds but by big international investors. Around 40 per cent of the demand came from UK institutional investors, with 30 per cent from the US and around a quarter from Europe.
Sistema is a conglomerate. As well as owning half of mobile operator Mobile TeleSystems, Sistema controls Moscow fixed-line operator MGTS, and has other businesses spanning technology, banking and property. It also owns the Detski Mir children's goods chain.
Mr Evtushenkov is not seen as a classic Russian "oligarch". Though he did benefit from the controversial privatisations in the 1990s, he was not involved in the energy sector. He also created much of his business empire from scratch and is seen as close to the Mayor of Moscow, Yury Luzhkov, who enjoys a power base independent of the Kremlin.
- 1 Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
- 3 Toby Sheldon: Justin Bieber lookalike found dead in motel room
- 4 Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
- 5 Pregnant teenager Neysi Perez 'wakes up in coffin' a day after her funeral
Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
Nazi gold train: 'Significant' discovery made in Poland
Toby Sheldon: Justin Bieber lookalike found dead in motel room
Horses 'neglected for 15 years' found with 3ft-long hooves
Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
Dresden riots: Protesters in Germany attack refugee buses shouting 'foreigners out'
France train shooting: US soldiers speak of the moment they stopped gunman and 'beat him until he was unconscious'
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£20000 - £25000 per annum + competitive: SThree: Are you passionate about sale...
£25000 per annum + benefits: Ashdown Group: A large financial services company...
£20400 per annum: Ashdown Group: An established and highly reputable organisat...
£20000 - £100000 per annum: Recruitment Genius: We are a successful and establ...