The government of Georgia has postponed sales of the Georgian Railway Company planned for the London Exchange on May 24, Vzglyad reports.
25% of shares of the company were planned to be sold for $250 million. Georgia plans to sell the gas pipeline running from Russia to Armenia and electric systems. The government will keep control over the majority of shares.
Opposition spoke out against the sales.
The Georgian Railway Company needed over a month to meet investors. Irakly Alasania, leader of the Our Georgia – Free Democrats Party, said that investors will demand a lower price for the shares in the light of world economic instability.
Kakha Zagania, leader of the Labour Party, said that the railway company is profitable and does not need IPO for foreign investments. He believes that President Mikheil Saakashvili will try to help his relatives buy the assets.
The income of Georgian Railway increased by 18% to $283 in 2011. Net profit totaled $104.4 million.
