EMEA: Russia – VTB to sell airport stake - Project Finance International
VTB Capital has agreed to sell a 25% equity stake in the company that owns Pulkovo Airport in St. Petersburg. A consortium comprising the Russian Direct Investment Fund (RDIF), Mubadala Development Company and other Middle Eastern and Asian co-investors alongside Baring Vostok Private Equity Fund V will buy the stake, which is valued at US$250m. On completion of the transaction, VTB Capital will reduce its ownership to 25.01%, while Fraport’s and Qatar Investment Authority’s stakes will remain at 25% and 24.99%, respectively. Fraport remains the lead operator of the airport. Pulkovo is Russia’s fourth largest airport and one of its largest PPP transactions, and following its recent upgrade has the capacity to handle over 22m passengers per year, benefiting from strong foreign currency inflows. In February, RDIF with Basic Element and Singapore’s Changi Airports International completed the acquisition of shares in Vladivostok International Airport in the Far East of Russia.