The government will withdraw six air carriers from the state-owned hi-tech corporation Russian Technologies (Rostekhnologii) to invest in the leading Russian air carrier Aeroflot aiming to increase its capitalization, a business daily on Tuesday quoted a Russian Economy Ministry official as saying.
Alexei Uvarov, the head of the ministry's property department, told Vedomosti that the Transport Ministry had prepared a draft of the presidential decree. The national flag carrier, in turn, will issue additional shares to be acquired by the state.
Originally, Rostekhnologii was due to become Aeroflot's key shareholder. Uvarov did not elaborate why the Transportation Ministry called off the plan.
An unnamed source in the Transport Ministry told Vedomosti that air service is a non-core activity for Rostekhnologii, so the government decision was justified.
Aeroflot is to receive Vladivostok Avia, Saratov Airlines, Sakhalin Airways, Rossiya, Orenavia, as well as Kavminvodyavia.
Experts predict the state share in Aeroflot was unlikely to grow dramatically.
"The state's share will hardly to exceed 70%," Vedomosti daily quoted Ingosstrakh Investment analyst Evgeny Shago as saying. The government currently holds 51% in Aeroflot.
"The government plans to increase Aeroflot's capitalization, then offer its shares to investors," Vedomosti quoted Uvarov as saying.
Uvarov said that at a further stage the government will list Aeroflot's stocks at some foreign stock exchange (currently they are traded on MICEX and RTS exchanges).
Uvarov said there is around 4% of Aeroflot shares in free circulation. The figure would probably grow to 25%-30%.
Rostekhnologii and Aeroflot officials have not commented on the deal.
MOSCOW, May 4 (RIA Novosti)
