The airline subsidiary and majority owner pays premium price to secure stake after other parties register interest (157 words)

Published: 11/27/2001

Ural Wings, the majority owner and subsidiary of Ural Airlines, with a 50.9% holding, has been revealed as the successful bidder for the 13.93% stake in Ural Airlines, which was sold at auction on 16th November 2001. According to Vitaly Yudin, Deputy General Director of Ural Airlines, although Ural Wings had previous expressed no interest in the stake even at the offer price, it had been galvanized into action by the news that three other bidders had registered for the auction, in contrast to the two previous events where no buyers had come forward. The airline was so nervous of competing bids that it offered twice the minimum price that had been set at every sale attempt (Rb 14.58m or $0.50m), paying Rb 30m (around $1m) for the 13.93% stake.

Article ID: 2929