Airport may sell new shares in Russia, abroad

Russia's largest international airport, Moscow Sheremetyevo may sell new stock on domestic and foreign stock exchanges after its merger with Terminal, the operator of the airport's terminal D, the Transport Ministry said on Tuesday. The Russian president's draft decree on the consolidation of Sheremetyevo airport's assets envisages the possibility of enlarging the airport's authorized capital through a new share issue as part of its reorganization. The state will retain a controlling stake of at least 50 percent plus one share, the ministry said in an explanatory note to the decree. Sheremetyevo, which will be reorganized via its takeover of Terminal, will use the proceeds from the new share issue for its development and may also sell the shares of its management company, the ministry said. Sheremetyevo is currently on a list of Russia's strategic enterprises which must be wholly owned by the state. Its reorganization via the acquisition of Terminal and the search for a strategic partner will require amendments to the Russian legislation. Ernst & Young international audit firm has valued Terminal at 10.9 billion rubles ($393 million) and Sheremetyevo at 53 billion rubles. Their merger will reduce the state's stake to 83 percent.