Negotiations for the controlling stake are underway

Published: 5/23/2000

According to the sources in Novosibirsk regional administration, the negotiations between Novosibirsk and the Ministry of State Property regarding Tolmachevo Airport are now taking place in Moscow. Novosibirsk Regional Administration has wanted control of the airport since the state's transfer of 51% stake was rescinded in January 1999 and formed a working group to achieve such a transfer in early April. This follows February's request by the region's governor Victor Tolokonsky to Putin to transfer the asset back to the region's property fund, with the undertaking that future dividends would be paid to the federal authorities. It appears however, that the Ministry is not entirely convinced of the argument of the region and is considering selling off their controlling stake through a tender. This follows a failed tender in October of 1999, which was followed by the announcement in December of pre-tax profits of $2.42m for the airport in 1999. According to Tolokonsky, he is uncertain whether the region would be able to get control of the airport if a tender went ahead, given that potentially the price of the stake would be several million dollars. The price being driven, according to local sources, by the competition between some unnamed Moscow-based buyers and Sibir Airlines based at the airport. The latter sits on the airport's board and has shown considerable interest in the airport in the past as an investor. The regional government favours Sibir acquiring the stake through the tender, according to Constantine Komarov of the Novosibirsk Regional Administration Transport Committee, believing that it will bring the most benefit to the regional economy.

Article ID: 1804