Published: May 28, 2012
Government delays plan to float 25% stake in national railway company.
The government of Georgia has shelved plans to float a 25% stake in Georgian Railway in light of global financial unrest.
The government had intended to float a stake in the company on the London Stock Exchange last week in a deal that could have valued the company at US$1bn.
In a statement late last week, Prime Minister Nika Gilauri said: “Last days I have consulted with bankers and investors and, taking into account the situation with world markets due to problems occurred in Greece and then in Spain, I was advised to postpone this process. Accordingly, I have to follow experts’ advice and to postpone with railway shares offering.
“In spite of the fact that several weeks ago the situation with world markets was positive and the Gas Corporation has successfully issued eurobonds, nowadays’ situation on international stock markets is not good enough. Accordingly, we have decided to postpone offering 25% of the railway to the stock markets until the situation changes to better.”