World Markets

French logistics company Gefco suspends Paris IPO plans

By Arno Schuetze, Oksana Kobzeva and Gleb Stolyarov

FRANKFURT/MOSCOW, Jan 28 (Reuters) - Logistics company Gefco, controlled by Russian Railways (RZhD), has suspended plans for an initial public offering (IPO), three sources told Reuters on Monday.

Gefco said in December that it planned to list shares on the Euronext market, with sources telling Reuters that Societe Generale, JP Morgan, Citigroup, UBS and Credit Suisse had been hired to proceed with the plans.

Russian Railways declined to comment and officials at Gefco were not immediately available for comment.

Gefco's December statement said that Russian Railways planned to remain the company's controlling shareholder but was considering reducing its stake to less than 50 percent through the IPO.

France'sPSA Group, which holds 24.96 percent of Gefco, was considering reducing its stake to less than 10 percent, with the remaining holding subject to a two-year lock-in period.

Gefco had said that a flotation would strengthen its position in the automotive and broader logistics sectors.

The company is a former subsidiary of French carmaker PSA, which sold 75 percent of Gefco to Russian Railways in 2012 for 800 million euros ($913 million).

Last year Russian Railways said it aimed to cut its stake in Gefco to 40 percent by 2020.

($1 = 0.8761 euros)

Additional reporting by Olga Popova and Gleb Stolyarov in MOSCOW and Inti Landauro in PARIS

Writing by Katya Golubkova

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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