PPF Group

Czech Investment Group. The holding company of the group is PPF Group N. V. registered in Amsterdam. PPF Group invests in a number of sectors of the economy, such as banking and financial services, insurance, real estate, power, mining, agriculture, retail and biotechnology (March 2013).

The PPF Group's territory of presence is Central and Eastern Europe, Russia and the CIS countries, as well as Asia.

Owners and Management

Co-owners of the group for 2007:

• Czech billionaire Peter Kellner, whose fortune is estimated by Forbes magazine at $6 billion^[1]he owned 94.25% of the holding company of the group PPF Group N. V.). He died in a plane crash in Alaska in March 2021.

When a helicopter crashed in Alaska in March 2021, the richest man in the Czech Republic, Peter Kellner, died. He founded PPF Group and owns Home Credit Bank, PPF Real Estate Holding, PPF Life Insurance.

• Jiri Schmeitz (5%),
• Ladislav Bartonicek (0.5%) and
• Jean-Pascal Duviesar (0.25%)^[2]2010).

Aktivs

As of June 30, 2018, the PPF group has assets worth almost 38 billion euros under management.

History

2022

Loss of 900 million euros after the sale of assets in Russia

Czech PPF Group will sell Russian subsidiaries for 531 million euros, recording a loss from sales transactions in the amount of 900 million euros, the group said in a report in December 2022.

The first part of the sale transaction took place at the end of June 2022: then it became known about the sale of PPF Group 50.5% in Home Credit Bank, the insurance, leasing and microcredit company Buy Not Dig. As a result of which PPF Group raised 382 million euros.

PPF sells 49.5% of Home Credit Insurance and Buy No Cops, as well as Forward Leasing to investors led by Ivan Tyryshkin

In May 2022, Czech PPF, which owns Home Credit, sold 49.5% of its shares in Home Credit Insurance and the microcredit company Buy Not Dig in Russia to a group of investors led by Ivan Tyryshkin. Tyryshkin also bought Forward Leasing from one of the structures of the Home Credit group.

Transfer of Home Credit Bank assets in Russia to IST Group

In April 2022, it became known that the owner Home credit of "" - the Czech an investment company - PPF Group began to transfer assets Russia in the group. IST Alexander Nesis We are talking about land plots with an area of ​ ​ more than 200 hectares To Moscow in and regions.

According to Kommersant, citing its own sources and SPARK data, on March 29, PPF Group transferred to DDS (its founder is Vladislav Resin, who oversees development projects in St. Petersburg of the IST group Alexander Nesis) 99.99% in LLC ISK Klokovo (owns 130 hectares in New Moscow). The company also transferred the rights to several plots with a smaller area - from 3.2 hectares of territories near Skolkovo to 53 hectares in Togliatti.

In April 2022, it became known that the owner of Home Credit, the Czech investment company PPF Group, began transferring assets in Russia to the IST group of Alexander Nesis.

According to one of the sources of the publication, PPF is also considering the possibility of transferring its commercial real estate in Russia to the IST group. At the same time, a source close to the Czech investment company explained that it does not plan to completely leave the country.

When selling a portfolio of commercial real estate, the level of debt burden secured by these objects and how much revenue from this real estate allows servicing loan obligations will play a big role, says Alan Baloev, partner at Commonwealth Partnership. As a rule, now European companies are transferring assets to Russian top managers. So, for example, the British Raven Property Group Foundation entered, which transferred its speech therapy facilities to the Russian Federation.

The publication of Kommersant also says that PPF Group has been selling assets transferred to the IST group on the open market for several years. But, given the current situation and the heterogeneity of assets, it is difficult to sell them at a value favorable to PPF Group: the buyer would most likely request a significant discount, says Igor Kuzmin, investment analyst at Accent Capital.^[3]

2019: Credit from Sberbank for the purchase of the Nevsky Center shopping center

On January 24, 2019, it became known that Sberbank provided financing to the structures of the international investment group PPF, the exact amount of which was not disclosed. The funds were used to purchase the Nevsky Center shopping complex in St. Petersburg, worth 171 million euros.

The complex structured transaction includes not only classic lending, but also products of Sberbank's global markets department, as well as escrow services at Sberbank (Switzerland) AG.

The structure of the transaction provides for the sale of products of our global markets division, as well as escrow services in our subsidiary bank in Switzerland, - said Anatoly Popov, Deputy Chairman of the Management Board of Sberbank, head of the Corporate Investment Business unit.

2016: Sale of the remaining 80% in Eldorado

On December 9, 2016, the press service of the company Dorado"" announced the sale of a 100% stake in the network by companies PPF Group N.V. and EMMA Capital to a group of investors associated with the financial group. "Safmar"

Earlier, Eldorado was 20% owned by the Czech company Emma Capital of businessman Jiri Schmeits, 80% by the Czech investment group PPF, the beneficiary of which is Peter Kelner.

2014

Aktivs

According to 2014 data, the PPF group for 2014 included:

• Home Credit - 88,62 %
• PPF banka - 92.96%
• Air Bank - 86,62%
• CETIN - 84,73%
• O2 - 84,91%
• SOTIO
• PPF Real Estate Holding B.V.- 100%
• PPF Life Insurance - 100%
• Eldorado - 80% (sold in 2016)
• RAV Agro-Pro
• Polymetal International plc - 17,9%
• PPF Art

Sale of 20% at Eldordo

The PPF Group and the EMMA Investment Group have signed agreements to partially sell interests in Home Credit B.V., Air Bank a.s. and Eldorado LLC. As a result of these agreements, PPF Group's interest in Home Credit B.V. and Air Bank a.s. grew by 2% to 88.62%, while PPF Group's share in the Russian Eldorado chain for the sale electronic engineers of household appliances decreased by 20% to 80%.

In 2014, PPF Group's most significant investments in the Russian Federation included:

• Home Credit Bank is one of the leaders in the consumer lending market
• One of the largest retailers in the country "Eldorado"
• Polymetal, a major producer of gold and silver (18.4%)
• Agroholding "RAV Agro-pro"
• PPF Life Insurance

Czech Republic O2 section for two companies

The draft voluntary division of Czech Republic O2 into two companies, infrastructure CETIN (Czech Telecommunications Infrastructure) and retail telecom operator O2 entered into force on June 1, 2015. CETIN is the operator of the largest data and telecommunications network, which covers the entire territory of the Czech Republic, and O2 provides communication and data services for customers in the Czech Republic and Slovakia.

Purchase 65% at Telefónica Czech Republic

At the end of 2013, PPF reached an agreement with Telefónica S.A. to acquire a 65.9% stake in Telefónica Czech Republic, a.s., which also includes 100% of its subsidiaries Telefónica Slovakia. After approval from the European Commission, the deal was closed at the end of January 2014.

In 2014, PPF's main biotechnology asset, SOTIO, continued research into new treatments for cancer tumors. For the first time in the modern history of the Czech Republic, a company from this country began the third phase of a global clinical study of the treatment of patients suffering from prostate cancer using active cellular immunotherapy.

2013

Acquisition of stake in French OriBase Pharma

The PPF Group has acquired a minority stake in the French biotech company OriBase Pharma, which specializes in the development of new therapies for cancer.

One of the largest investors in Russia

In 2013, PPF Group was one of the largest European investors in Russia. PPF Group makes large-scale investments in such sectors of the Russian economy as financial services, retail, as well as real estate.

In Russia, PPF Group's most significant investments as of March 2013 included:

• one of the leaders in the consumer lending market, Home Credit Bank,
• one of the country's largest retailers, Eldorado (100%)^[4] as well as
• Polymetal, a major producer of gold and silver (20.68%).^[5]
• insurance company "Generali PPF Life Insurance,"
• agricultural holding "RAV Agro-pro" (100%)^[6],^[7][8]
• the largest shares in Nomos Bank (26.53%)^[9]

In addition, the PPF Investments fund, which is related to PPF, owns 38.5% of the shares of the Russian insurance company Ingosstrakh ^[10]

PPF Real Estate Russia also operates in Russia, which is part of PPF Real Estate Holding B.V. and specializes in real estate management and development of development projects in Russia.

2012

A string of big deals

The energy and industrial holding invested abroad the largest amount in Czech history - for 2.6 billion euros, it acquired a 49% stake and management control in the Slovak gas company SPP, the most important energy asset in Slovakia. SSP is a strategic transporter of Russian natural gas to EU countries.

In January, PPF Group agreed with Generali to sell its 49% stake in the joint insurance company Generali PPF Holding (GPH). On the other hand, PPF acquired from GPH a 100% stake in dynamically developing insurance assets in Russia and some other CIS countries. An integral part of the agreement is the exchange of assets in such a way that Generali will increase its stake in Russian insurer Ingosstrakh to 38.5%, and PPF Group will acquire full control over PPF Partners private equity funds. In March, the sale of a 25% stake in GPH was closed, and PPF Group acquired a 100% stake in CIS insurers. The comprehensive deal was closed in 2014.

In March, the asset division process was completed, which was announced in 2012 in connection with the withdrawal of Jiri Schmeitz from the PPF shareholders. It acquired a direct interest of 13.37% in Home Credit B.V., the holding business structure of Home Credit Group, as well as Air Bank a.s. In both companies, 86.63% is owned by PPF Group N.V.

As of June 30, 2012, PPF owns assets in the amount of 17.6 billion euros in the global market. The group at this time included:

• EP Holding
• Generali PPF - 49%
• PPF Bank
• PPF Real Estate
• Home Credit Group - 100%

Sale of 25.5% of Nomos Bank

The Czech PPF Group has agreed to sell 26.5% of Nomos Bank's voting shares: 19.9% will be acquired by the Otkritie financial corporation, 6.6% by Alexander Mamut (No. 40 in the Forbes ranking of 200 richest businessmen in Russia, fortune - $2.1 billion) and former vice president of AltimoOleg Malis.

Funds from the sale of shares of the Czech group will invest in the further development of key assets in Russia, as well as to enter rapidly growing Asian markets. In the Russian Federation, among the planned investments are real estate projects - logistics centers and office complexes. Also among the priorities is the development of the Eldorado network. In addition, PPF plans to participate in a tender for a license for a mobile operator in the Czech Republic, scheduled for the second half of the year.

2011: Asset Development

The Group develops key assets in mainly Russia consumer lending, retail and real estate segments, as well as to support expansion in high-growth markets. Asia

2010: RAV Agro-Pro и Air Bank

PPF Group joined the agricultural industry of Russia, acquiring a majority stake in the holding of AV Agro-Pro, which is actively working in the field of crop production and in primary livestock production in several areas of the Central Black Earth Region.

Air Bank, a new wholly owned subsidiary of PPF Group providing retail banking services in the Czech Republic.

2009: Purchase of the Eldorado chain

The PPF Group focuses its efforts on strengthening and developing ongoing projects. At the same time, new investment opportunities are also being considered. The group became the owner of the largest chain of electronics and household appliances stores in Russia - Eldorado.

In European markets, it makes investments, including through participation in the Energy a prumyslovy holding, which is part of the capital of various energy companies operating in Central Europe.

2007: Establishment of PPF Generali JV

In 2007, PPF signed an agreement with the Italian insurance company Generali on the creation of a joint holding operating in Central and Eastern Europe, as well as in the CIS countries. Thus, the company acquires the status of a multinational corporation. In the new capacity, PPF also enters Asian markets, primarily the markets of China and Vietnam, and also implements a number of investments in Ukraine, Belarus and Kazakhstan, mainly in the areas of consumer financing, insurance and real estate.

2006: Sale of eBank to Raiffeisen Group

PPF sells eBank to the Raiffeisen group.

2004: Reselling TV Nova to Americans

The company's peak in Czech Respubik was in 2004, when PPF successfully completed the restructuring of the largest private Czech television company (TV NOVA) and later sold it to American company CME.

2002: Entering the Russian market

In 2002, PPF entered the Russian market, where it invests primarily in the insurance and consumer finance sectors. And even though the initial stage was fraught with a number of difficulties, Russia it was and remains a priority market for the development of the company's business. Russia PPF successfully develops the activities of Home Credit Bank and invests not only in the finance and insurance sector, but also in the extraction of gold and silver (company Polymetal"").

1997: Home Credit Group Establishment

In 1997, PPF established Home Credit, a consumer finance company, acquired and completely restructured two banks - PPF Bank and eBank (1999). The company extended its activities to the territory of Slovakia.

1990s: Insurance in the Czech Republic

PPF began as an investment fund in 1991, after the fall of the communist regime in Czechoslovakia. The name originally stood for První privatizační fond. The volume of assets under the management of the group amounted to about $225 million. The fund took part in the privatization process. The initial stage of the Group's activities was not easy. The first major investment was the acquisition of a substantial stake in the Czech Insurance Company (Česká pojišťovna), the leader of the insurance market in the Czech Republic. The successful transformation of the largest Czech insurance company from an inefficient public institution to a dynamic private company laid the foundation for subsequent successful projects.

Notes