The subcommittee of the government commission for the control of foreign investment did not approve the agreement to sell a stake in the European Bank for Reconstruction and Development (EBRD) to the Softline group. The EBRD owns 5.3% of the stock market.
As Frank Media reports, citing two sources familiar with the commission’s decision, authorities “have questions” about Softline’s ability to buy back shares from the Moscow Stock Exchange. A third source close to one of the parties confirmed that “the deal is not closed.”
One of the publication’s interlocutors said that the legal commission will not allow Softline to be the “sole buyer”, so the group is looking for a partner with whom it will try again to obtain permission for the agreement.
“Softline was not satisfied with the Ministry of Finance as a buyer; Softline will not be able to buy a single stake in the Moscow Stock Exchange from the EBRD,” one of the sources added.
In addition, he said, the government plans to charge the EBRD a higher contribution to the budget “at the level of 50%” to offset “at least slightly” the funds invested in the bank.
In late October, Forbes wrote that the government had approved the deal between the EBRD and Softline. It was later reported that the subcommittee requested during its examination a 60% discount on the exchange value of the share on the Moscow Stock Exchange, and also accepted a 20% exit tax.
The EBRD entered the capital of the Moscow Stock Exchange in 2012, when it acquired a 6.3% stake in the trading platform. According to data from April 2023, the bank holds a 5.3% stake.
Author:
Akhmed Sadulayev
Source: RB
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