Mostotrest to Hold SPO
OREANDA-NEWS. June 30, 2010. Mostotrest could hold an SPO in 4Q10 or in 2011. The possible volume of additional share issue was not disclosed, reported the press-centre of OTKRITIE Financial Corporation.
View: We believe that the aim of SPO is to finance large projects such as construction of Fourth Transport Ring in Moscow. An SPO could help Mostotrest and other bridge building companies to increase transparency and the liquidity of their shares-- at present Mostotrest’s free float does not exceed 5%. Mostotrest has reportedly prepared a 2009 IFRS statement. Publication of its IFRS results would serve as a strong example for other bridge building companies.
Valuation and Action: We regard the news as a long-term positive for the stock and reiterate our BUY rating for Mostotrest.