Novorossiysk Drops Most on Micex on Share Concern: Moscow Mover

OAO Novorossiysk Commercial Sea Port fell the most on Russia’s benchmark stock gauge after the government said it may sell a 20 percent stake in the country’s largest Black Sea harbor through an additional share placement.

Novorossiysk dropped 3.7 percent to 3.45 rubles by 2:19 p.m. in Moscow, poised for the lowest close since Feb. 5. The stock declined 2.6 percent in London.

The government hasn’t yet made a final decision on how to sell its 20 percent stake in Novorossiysk, which it may offer in an additional share placement or to a strategic investor, Olga Dergunova, the head of Federal Property Management Agency, said in Moscow today. The sale, which is planned for this year, is unlikely to happen in the “spring window,” Dergunova said. Russia is interested in finding a strategic investor for the Novorossiysk shares, Economy Minister Andrei Belousov said Feb. 7 at a government meeting.

“The fact that the government is once again considering an additional share placement instead of a sale to a strategic investor, is negative for sentiment because it creates a share overhang risk,” Vladimir Dorogov, an analyst at Alfa Bank, said by phone from Moscow. “Also, investors are concerned that there may be a delay in the privatization.”

To contact the reporters on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net; Ekaterina Shatalova in Moscow at eshatalova@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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