On June 30 Uralsib FC said in a press release that it had considered buying 8.38% in Uralsib bank. The share package presently belongs to the Bashkortostan Republic. In late February 2008, the share package was included on the list of state assets slated for privatization in the republic. The Bashkir government estimates the value of the share package at around USD 305 million (RUB 7.15 billion).
The Bashkir government proposed a buyout price of USD 0.0178 (RUB 0.418) per share, an increase of 11.8% on current stock valuations and in line with the stock's fair value. In the wake of the deal, Uralsib FC would bring its total holding in the bank, now at 90.4%, to about 98.8%. By current law, minority shareholders have the right to submit their shares for buyout to a shareholder that, together with its affiliates, has amassed over 95% of shares in a company. Therefore, the adoption of a decision on the buyout of shares at the suggested price should lend support to the bank's stock valuations.
Our estimates show that the fair price of one common share in Uralsib bank should be USD 0.0188, which implies an upside potential of 16.8% to current stock valuations and corresponds to a BUY recommendation.
0.569
0.073
