No more than 25 percent of Georgian Railways to be placed on London Stock Exchange
Georgia, Tbilisi, May 17 /Trend N.Kirtzkhalia/
The Georgian Economy Ministry is studying the possibility of placing 25 percent of the shares of Georgian Railways on the London Stock Exchange, the ministry told Trend.
"The question on how profitable will be the placing of minority shares on the London Stock Exchange is considered," the ministry said.
Meanwhile, Reuters, referring to its source on Thursday said that Georgia assess the shares of Georgian Railways on $15.25-19 per depositary receipt. Thus, the cost of the campaign could reach $0.8-1.
As a result of initial placement the government can earn up to $250 million.
The ministry stressed that Georgian Railways will remain under the management of government and "change in the management of the company is not planned" and that no more than 25 percent of the shares will be placed on the exchange.
It should be noted that revenues of Georgian Railway increased by 18 percent in 2011 - up to $283 million. The net profit amounted to $104.4 million.