Group A1

A1 is an investment company in Russia, a key investment division of Alfa Group, one of the country's largest private financial and industrial consortia.

The company was founded in 1989 and has 27 years of experience in managing investment projects in various industries in Russia and abroad, including Alfa-Bank, TNK-BP, VimpelCom, MegaFon, X5 Retail Group (Perekrestok, Pyaterochka, Kopeyka retail chains), the first national chain of grocery supermarkets in the Republic of Belarus BelMarket, Formula Kino, Independence, IBRC (The Irish Bank Resolution Corporation), Rosvodokanal, Smirnoff, Unitile, ABInBev (Sun InBev Russia), DS Controls and many others. The total value of assets in the A1 portfolio since 1989 has exceeded $50 billion.

A1 is a team of investment bankers, financiers, lawyers and managers with the best foreign and Russian education and proven experience of successful work in the world's largest investment funds and companies in various sectors of the economy. The total investment in the current portfolio exceeds $500 million.

Areas of activity

The company's business is based on four main areas:

• investing in promising companies with an eye to creating industry champions;
• managing the current portfolio to increase the capitalization and market value of assets;
• projects with the possibility of applying A1 competencies in resolving "special situations";
• working with distressed assets of banks for their financial recovery and creation of shareholder value.

"It is worth explaining the very term" special situation. " It implies the ability to enter the asset at a discount, and then realize its share at fair value, "- so in an interview with Kommersant in 2014, the head of the A1 at that time, Mikhail Khabarov, described the philosophy

As of September 2016, the portfolio A1 such projects as:

• network of grocery supermarkets in Belarus "BelMarket,"
• network of cinemas "Formula Kino,"
• car dealer "Independence,"
• Joint venture with The Irish Bank Resolution to return real estate in Russia to the Irish government.

History

2024: Mikhail Fridman and his partners sold shares in the company

On March 18, 2024, it became known that businessmen Mikhail Fridman, Peter Aven, German Khan and Alexey Kuzmichev sold their shares in A1, the investment division of Alfa Group. The transaction cost amounted to 100 thousand rubles.

According to the Vedomosti newspaper, the buyer of the assets was the general director of A1, Alexander Fine. The deal became known from the testimony of the co-owner of the bankrupt Vneshprombank (VPB) Georgy Bedzhamov in the High Court of England and Wales. "A1" represents the interests of the bankruptcy trustee of the VPB - the Deposit Insurance Agency (DIA).

Unsplash

According to Bedzhamov's statements, the deal to sell shares in A1 took place in the spring of 2022, a week after these businessmen fell under sanctions. Bedzhamov claims that the amount was symbolic, and he calls the sale a fiction: according to him, Fridman, Aven, Khan and Kuzmichev actually continue to control "A1."

At the same time, Fine does not agree with Bedzhamov's statements. In another trial, the general director of A1 presented evidence that the price of 100 thousand rubles at the time of the transaction was market. Court documents say in part that the company had an unsatisfactory financial position. So, according to the financial statements for 2022, the net loss of "A1" amounted to 992 million rubles, having risen 78.7 times on an annualized basis (from 12.6 million rubles in 2021). Representatives of Bedzhamov, in turn, say that the financial statements may not have taken into account, among other things, the $20 million debt of the collapsed Vneshprombank to A1.

A1 lawyer Nikita Gaevoy told Vedomosti that Bedzhamov's accusations "are provocative and aimed at discrediting the investment company." According to the lawyer, Fine bought shares in A1 at a market value fairly determined by a specialist appraiser.^[1]

2022: Transaction with FGC to acquire a site in Moscow

On February 7, 2022, the FGC Group of Companies and A1 investment company announced the conclusion of a sale and purchase transaction for 75% of the share in the project for the development of a site located in the Southern Administrative District of Moscow within the boundaries of Promzona No. 58 Lyublino. Read more here.

2018: Purchase of rights to claim debt of 3.2 billion rubles to Elena Baturina's brother

The investment company A1 acquired the rights to claim a debt of 3.2 billion rubles against Elena Baturina's brother Viktor Baturin. The deal was concluded in December 2018 with Viktor Baturin's largest creditor, Cyprus-based Sarrio Investments (the beneficiary is unknown).

A1 intends to collect the debt from the richest woman in Russia. The payment of this debt will satisfy the requirements of all Baturin's creditors, including Sarrio Investments, the Federal Tax Service and Rosselkhozbank. Read more here.

2017: Participation in the conflict of owners Exist.ru

In January 2017, it was announced that the A1 had resolved the corporate conflict by dividing the businesses between A + A Exist Info LLC and Exist-M LLC and subsequently attracting a partner who has an independent trading and logistics function. Thus, it was possible to form an updated Exist.ru. Read more here.

2016

On July 20, 2016, the investment company A1 announced plans to analyze the assets of various sectors of the Russian economy and invest in the development of undervalued assets in dynamically developing and key import-substituting industries of at least $1 billion during 2016-2017.

These investments included a joint investment program between A1 and Alfa-Bank with equity capital of $200 million, announced at the end of May 2016.

As of July 2016, A1 holds 12 potential projects in development. The average investment is planned ~ $50 million, the IRR target is at least 25% per annum in US dollars. Of interest for investment are the agro-industrial complex, FMCG, metallurgy, mining, chemistry, petrochemicals, forestry, transport, mechanical engineering, real estate, regional retail and assets, where there is synergy with Alfa Group.

In a difficult economic situation, many Russian companies in industry and trade are now undervalued and have good growth potential, subject to effective corporate governance. We are interested in assets with the prospect of leading industries and maintaining the status of a leader for several years. There are many players in the investment market, but it is the combination of key competencies of the A1 - investment, resolution of "special situations" and work with distressed assets that makes our expertise unique. Alexander Vinokurov, President of A1

Notes