VTB to Sell Up to $3 Billion of Shares in 2013, CEO Says

VTB Group Chief Executive Andrei Kostin said Russia’s second-biggest lender may sell as much as $3 billion of new shares this year, the state-controlled lender’s first offering since 2011.

The Moscow-based bank may sell “from $1 billion to $3 billion” of stock, Kostin said in a Bloomberg Television interview today at the World Economic Forum in Davos, Switzerland.

VTB last sold shares at $6.25 per global depositary receipt in February 2011. That’s about 61 percent more than the current value of the stock, which closed little changed today at $3.87 in London. The 2011 sale raised $3.3 billion.

“Any sale of new shares would be better at a price above or the same as before,” Kostin said. The actual price could be different and will depend on market conditions, he said.

The shares rose 0.1 percent to 5.944 kopeks. That compares to 9.1468 kopeks a share the bank got in February 2011.

The Russian government has said it plans to sell all of its stake in VTB by 2016. First Deputy Prime Minister Igor Shuvalov said last week the bank was in talks with sovereign-wealth funds from China and Kuwait and would sell at least $3 billion of stock at a price no less than that of the 2011 offering.

His insistence on a higher price may mean “privatization is much further away than previously thought,” Julian Rimmer, a trader of Russian shares at CF Global Trading in London, said last week.

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