Shares of JSC Freight One, a subsidiary of Russian Railways, will transpire on 28 October.
Bidders will be invited to purchase 64,239,325,613 ordinary shares of JSC Freight One, or 75% minus 2 shares of the company.
The form of the offering will be an open auction.
The bidding will start at an initial price of 125.375 billion rubles, with subsequent bids proceeding in 500 million ruble increments.
The Government of the Russian Federation mandated on 28 July, 2011 that the auction take place, following a decision that was made by the Board of Directors of Russian Railways.
Russian Railways President Vladimir Yakunin said:
“This sale will become a key element in the reform of the freight side at Russian railways.
“As a result, the market will see the entering of the largest private player into the cargo sector, while Russian Railways will receive significant funds to finance its investment programme.
“The terms of the auction mean that we can expect a strategic investor to enter the industry who is interested not only in the commercial benefits, but also in the development of Russia’s rail system.”
