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Segezha Group ready for IPO after market prices recover, says Sistema CEO

Chief Executive Officer of the corporation Vladimir Chirakhov noted that due to the unfavorable environment the markets have lost 40%

MOSCOW, June 28. /TASS/. Segezha Group timber holding (part of Sistema) plans an IPO as soon as the market recovers after the crisis, Chief Executive Officer (President) of the corporation Vladimir Chirakhov said during an annual general shareholders meeting of Sistema on Saturday.

"We see huge interest from the side of Segezha Group potential partners. As far as an IPO is concerned, I believe the company is absolutely ready. However, due to the unfavorable environment on the markets as they have lost 40%, amid today’s low prices we suggest that we will not be able to receive the required IPO valuations of the company, which is why prices recovery is the key factor influencing IPO," he explained.

It was expected that an IPO of the timber asset Segezha Group would be held or a strategic investor would be brought into the asset in the first half of 2020, Managing Partner of Sistema Ali Uzdenov told TASS on the sidelines of the St. Petersburg International Economic Forum in 2019.