Jun. 28 – China Investment Corporation, the country’s US$300 billion sovereign wealth fund, is considering buying a 5 percent stake in OAO Sberbank, Russia’s biggest lender, media reports say. According to Interfax, the first round of negotiations has already taken place.
Sberbank, a crown asset in Russia’s three-year US$35.5 billion privatization drive, is selling off a stake of up to 7.6 percent by mid-September and is expected to roll out its privatization program soon, China’s 21st Century Business Herald reports.
The bank is expecting to raise around US$6 billion through the sale of a 5 percent stake to the Chinese fund, which manages part of the country’s foreign exchange reserves.
The Russian central bank, which owns a 57.6 percent stake in Sberbank, has appointed Goldman Sachs, Morgan Stanley, JPMorgan Chase, UBS and a Russian investment firm to be co-financial counselors for the sale.
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