Page 49 - bne_Magazine_April_2018

bne April 2018 Eastern Europe I 49
told bne IntelliNews in a recent interview.
Ultimately for direct investors and the corporate sector Russia is simply too big to ignore. “It's a great secret. If you are making lot of money selling chocolate then you don't necessarily want some- one else coming in and start competing against you. But it's a huge irony that you can make great money here as a business, but struggle to raise the funds from international investors to grow that business," says Reed.
Finally, unlike other EMs, Russia exit environment has been improving recently. KPMG statistics indicate that M&A deal values averaged over $75bn
annually from 2013-2016 while the IPO window that can flap like a shutter in a gale, reopened in 2017 and is expected to be open this year too.
“Russia traditionally has offered reason- ably good liquidity. If you need to exit a
business at any point in the cycle there is typically sufficient money in the market and enough large domestic players to allow an exit. So you can get out,” says Reed. “IPO is another way and there are those foreign strategic investors that still want to enter the region.”
Find more Eastern Europe content at www.bne.eu/eastern-europe
Selected headlines from past month:
· Russia's AFK Sistema places $1.5bn bid for Indian telecom assets as it resumes investment activity
· Russia's Putin supports $1.5bn investment in domestic SSJ100 jet
· Russian private oil major Lukoil beats Rosneft capitalisation as new investor darling
· Russian President Putin promises justice after Siberian shopping mall blaze tragedy
www.bne.eu