100% of shares of OJSC “Sverdlovskavtodor” will be resold at the auction

Bidding for the sale of state-owned block of shares of OJSC “Sverdlovskavtodor”, scheduled for 3 June , did not take place due to lack of bids (the starting price offered for the block was 2.45 billion rubles).
Currently a new report on the assessment of the value of shares is prepared to be issued and then the second auction will be announced – at a new price. It will be formed taking into account a considerable deterioration , since the last report (made on 1 October, 2014) , of financial and economic characteristics of the company.

“We continue to consider the asset to be highly liquid in terms of investments. The company is , in fact , a monopolist in the market of road facilities of Sverdlovsk Region, carried out considerable contracts , including state ones , and own a significant amount of non-core assets – real estate , which , with proper approach , can become a serious source of income for the future owner. We are persuaded of the necessity to involve in the development of the company a major investor , able to offer an effective strategy for the development of the key activity of the company” (Andrey Stepanenko, General Director of OJSC AHRF).

For reference
For today shares of OJSC “Sverdlovskavtodor” – the most expensive asset in the list of “small privatization” in 2014–2016.
The Company is now the largest road enterprise in Sverdlovsk Region. It provides maintenance of all federal roads passing through the territory of Sverdlovsk Region and over 70% of regional and municipal public roads.
The main income is carrying out the works on contracts with two important state customers: Federal Highway Administration “Ural” and the Administration of Highways of Sverdlovsk Region.

Today the company has contracts valid until 2018.
The company has 15 branches throughout the region, each with a full-fledged production bases, equipped with everything necessary to carry out a complex of key works.
In addition, the enterprise owns the unused assets as land plots with the objects of real estate located on them , which can be repurposed for the objects of road service due to its location close to the main regional highways. Thus, the future investor will be able to recoup some of the funds spent for the purchase of the asset.