16.07.2012

Auction for share package of Yugoria state insurance company will not go ahead

The Auction House of the Russian Federation has announced a lack of applications for the auction for the sale of a 100% share package in the Yugoria state insurance company scheduled for 1 August.

Last week, the period ended for accepting applications for the auction for the sale of a 100% share package in the Yugoria state insurance company. The determination of participants was scheduled for 17 July. Owing to lack of applications, there are grounds for declaring the auction void.

In accordance with the Federal law “On privatization of state and municipal property”, in the case that the auction is declared void, the subsequent sale of the property will be carried out by a public offering. The new conditions for the sale of the share package will be announced later.

Andrei Stepanenko, general director of the Auction House of the Russian Federation:
We believe that the reduced period for exhibiting the lot led to a number of possible applicants, including foreign investors, from deciding not to take part in the auction. Previously, AHR experts insisted on scheduling a different auction date – 1 October. The probability of selling the asset of the Khanty-Mansiisk autonomous okrug – Yugra would have been much higher with a prolonged exhibition period.

Reference:

The auction on 1 August was for 1,833,323 uncertified registered ordinary shares in the Yugoria state insurance company, constituting 100% of the company’s charter capital.
Starting price of lot – 5.2 billion rubles.