On October 28, Moscow hosted an auction to sell 75% minus two shares in Freight One, a subsidiary of Russian Railways.
The block of shares of Freight One that was put up for auction sold for over 125,500 million rubles, only 125 million rubles higher than the starting price of 125,375 million rubles.
There were four applicants that participated in the auction and the Independent Transport Company won.
At the auction, Russian Railways President Vladimir Yakunin said:
“Today the biggest deal in the railway transport industry was made. We are pleased with the outcome of the auction, and congratulate the winner.
“The sale of the controlling stake in Freight One is a key element in the reform of Russian Railways’ cargo transport system, and is logically consistent with our desire to achieve a target market model for railway transport services by 2015.
“A strategic investor has arrived in the industry who is interested not only in its commercial benefits, but also in the development of Russia’s railway transport system.
“We look forward to constructive cooperation and mutual understanding with the new owner of the company.
“In turn, Russian Railways is receiving significant funds to support its investment program. The money is slated to be transferred to the company before the end of 2011.”
