S7 Airlines auction postponed by one month

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The auction of the Russian government's controlling shareholding in S7 Airlines has been postponed for a month, pending reassessment of its price.

Russia's state property committee says it wants to correlate the valuation of the 25.5% stake in the carrier with its financial performance in 2012. It is currently valued at Rb1.2 billion ($36 million).

Ahead of the auction, originally scheduled to be held on 25 April, the S7 Group reported its financial results for 2012.

Under Russian accounting standards, consolidated income increased to Rb56 billion from Rb45.4 billion in 2011. However, net profits dropped from Rb733 million to Rb548 million.

The government-appointed agent, Alfa Bank, says applications from qualifying bidders for the state's stake in S7 Airlines will be now accepted until 27 May, with the auction scheduled to take place on 30 May.

To date, only the S7 Group and its subsidiary carrier Globus have submitted one single application.