Russian railways fund buys Rotenberg stake in Mostotrest Builder
By Bloomberg
PJSC Mostotrest, the bridge and road builder linked to President Vladimir Putin’s judo partner Arkady Rotenberg, said OAO Russian Railways’ pension fund agreed to acquire control of the company.
The pension fund’s TFK-Finance unit raised its holding in Mostotrest to 64 percent, agreeing to buy a 39 percent stake from a group of investors that includes Rotenberg’s son Igor and the three owners of N-Trans Group, which has rail and port assets, the construction company said in a statement today.
TFK-Finance also made a mandatory offer to other shareholders in accordance with Russian law, Mostotrest said. The company offered minority investors 92.13 rubles a share, an almost 8 percent premium to the closing price Wednesday. Shares surged as much as 8.8 percent after the news and traded up 7.1 percent at 91.50 rubles by 12:43 p.m. in Moscow.
Mostotrest has been the main beneficiary of the Russian government’s infrastructure spending in recent years, including the Sochi Olympics and a Moscow-St.Petersburg highway. It had 151 billion rubles ($2.9 billion) of sales last year.
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