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March 15, 2019 www.intellinews.com I Page 13
Russian Abramovich and Abramov sell 1.7% in Norilsk Nickel in an overnight SPO
IntelliNews Pro
Crispian Investments of Russian billionaires Roman Abramovich and Alexander Abramov
held an overnight accelerated book-build for a secondary public offering (SPO) of a roughly 1.7% stake in metals major Norilsk Nickel.
This was the largest offering in the metals and mining sector this year, VTB Capital told Vedomo- sti daily on March 12. UK investors accounted for the most bids (39%), with Russian investors fol- lowing (33%). While initially 1.25% was up for sale, the offer was increased. Selling at RUB1,345 per share (6.5% discount to the market), this trans- lated to a deal of about $533.5mn.
BCS Global Markets see the offer as slightly overpriced due to several downside risks in base metals prices, expecting nickel price to decline
on the back of an anticipated fall in steel prices (the metal is mostly used in stainless steel production).
The analysts also note that Crispian Investments has about 2.5% left in the company, hence overhang risk will persist in the stock from now on, being another negative factor. Free float should increase to about 32.9% after the deal.
Last year, Crispian tried to sell a 4% stake in Norilsk to Vladimir Potanin’s Interros for $234 per share, but Rusal blocked the deal through a London court, Sberbank CIB noted on March 12. The latest SPO banned any affiliates of both Interros and Rusal from participating.
Read the full story here
Russian car dealer Rolf could IPO
IntelliNews Pro
Russian car dealer Rolf is considering holding
an initial public offering (IPO), as well as placing short-term bonds, the company said on March 12.
"Regarding the IPO, we are now looking into it, and the degree of our readiness is confirmed by the fact that we are still a LLC, not a PJSC,” the CFO Alexander Ozeryanov said as cited by Prime, adding that the IPO is more of a mid-term or a long-term issue.
This week the car dealer debuted with RUB3bn ($46mn) worth of exchange bonds with the first annual coupon of 10.45%. Rolf is one of the largest car imports and dealers in Russia with dealerships in Moscow and St. Petersburg.
It also provides and provides loan and insurance agency services.
Rolf’s founder told bne IntelliNews in an exclusive interview that he got his start as a taxi driver who built a car dealership empire by being scrupulously honest and concentrating on quality of service rather than nefarious schemes. He also chose the name Rolf as it was the most unRussian sounding name he could think of and in the 90s most Russian associated “foreign” with “quality.” The leading brand “J7” juice from the company Wimm-Bill-Dann was chosen for the same reason: there is no “J” in the Cyrillic alphabet.