Yekaterinburg's Kolstovo Airport fails to get bidders for Oblast's holding

Published: 1/4/2000

Ural Business News agency reported that yet another attempt to sell 9.06% of Kolstovo Airport in Yekaterinburg, has failed. An auction for the stake in Russia"s third largest airport, in terms of volume of domestic traffic, was cancelled owing to there being no bids, despite a reserve of only 29m rubles ($1.15 m). The 9.06% stake was part of the Sverdlovsk Oblast"s 25.5% holding in the airport, which is 25.5% owned by the Federal Government and 40% by employees, with management and private investors holding 9%. Potential bidders may have been put off by prepayment of 5.8 m rubles ($223,000) to participate in the auction, although a small minority interest may be the problem for investors concerned over the difficult market conditions. The need for a substantial investment programme, estimated by the airport to be in excess of $200m in addition to commitments of $25m already made, may have also made prospective shareholders reluctant to commit. Associated articles: www.concise.org 28th February 1997, 26th August 1999, 20th October 1999

Article ID: 1271