EBRD looking to buy RTS stake as MICEX merger talk swirls

The EBRD is believed to be in the box seat to buy a 10% stake in the RTS Russian stock market.

KIT Finance, owner of a 10% stake in Russia’s RTS stock market is understood to be looking to sell its stake in order to repay a debt to the Russian Deposit Insurance Agency. However, the Financial Markets Service believes this could hamper the possible merger of the RTS with its larger counterpart, MICEX.

The EBRD is understood to have written a letter to Prime Minister Putin and Finance Minister Kudrin promising support for the consolidation. Neither KIT Finance or the EBRD are commenting publically.

In an exclusive interview to Business RT the head of the Financial Markets Service says this raises even more questions.

“There were reports that the potential buyers were willing to support the consolidation of MICEX and RTS. In my view this raises even more questions, because I know the position of most RTS shareholders, who are cautious about the merger.

That’s why I don’t fully understand how a new shareholder, which they’re waiting for, will take a different point of view. I’ll say this directly – There’s little clarity, and most important – neither investors nor the stock market seem to have a clear idea how this will end.”