New date for delayed float by telecoms giant Megafon

15 November 2012

Megafon, the Russian telecoms giant controlled by Arsenal’s second biggest shareholder, Alisher Usmanov, confirmed plans today for a London stock market float that could value the business at $14 billion (£8.8 billion).

Plans for the initial public offering (IPO) were temporarily dropped last month amid market jitters and concerns over corporate governance as Goldman Sachs withdrew as an adviser.

But Megafon’s 15% float is now back on, with shares priced between $20 and $25, in one of the biggest Russian IPOs in London. Dealing begins on November 28.

Those close to Megafon, Russia’s second-biggest telecoms company, insist the governance issues have been sorted out and investors hold it in “high regard”. The board will have three directors representing Usmanov, picture, two for TeliaSonera, the other key shareholder, and two independents.

Morgan Stanley and Sberbank CIB are leading the float and Citigroup, Credit Suisse and VTB Capital are bookrunners.