Moscow Exchange considers the sale of Gazprom shares not transparent

 In the fall of 2019, Gazprom sold a block of quasi-treasury shares in the amount of $5 billion at MOEX. Following the sale, the company’s press service announced that the number of securities in free circulation is 49.61% of the share capital. Despite the official statement, representatives of the index committee advised not taking into account the latest deal, since the name of the new owner is still unknown. Thus, the share of stocks now stands at 46%, as before the sale.

     According to Forbes, the MOEX didn’t take into account changes in Gazprom’s transactions results twice: in August and November, as representatives of the committee refused to take into account transactions because of the anonymity of the buyer and advised them to wait until the buyer’s name was revealed.

     Ilya Pitersky, a committee representative, said that the Moscow Exchange makes decisions regardless of the committee, which can only give advise. But he also didn’t deny the fact that the exchange was guided by the results of the committee’s vote, which was held on both sales of quasi-treasury bonds of Gazprom.

    Andrei Akimov, Head of Gazprombank, only made clarifications regarding the deal. According to him, the stock was bought back by a consortium of investors. But the exchange doesn’t have an understanding of who the consortium consists of, so it is too early to recognize realized shares as free.

     Gazprom’s management insists that part of the “free” securities is 49.61% and calls the Moscow Exchange methodology incorrect.

    We remind that during 2019 the holding sold two large packages of securities. Previously they were owned by subsidiaries. In July, Gazprom Gerosgaz Holdings B.V. and Rosingas Limited sold 693.6 million securities at 200.5 rubles per one. In November, Gazprom Gas Distribution sold 850.6 million shares at 220.72 rubles. In total, Gazprom earned 326.7 billion rubles from the sale of shares.

     Timur Nigmatulin, an analyst with Otkritie Broker, commented on the importance of the level of free stocks. The increase in their number makes the company more attractive to foreign investors and may affect the additional infusion of investments from funds.