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Sollers-Finance

Company


Owners:
Sovcombank - 100%

Owners

Performance Indicators

According to data of RAEX, at the end of 2019 Sollers-Finance enters in top-40 the leasing companies by the portfolio size (9.2 billion rubles). By the number of the new agreements signed in a year the company takes the 19th place. The basis of the leasing portfolio is formed by freight vehicles (73%), cars (14%) and also special equipment (12%).

History

2020: The Sovcombank paid 1.2 billion rub for 50% of the company and consolidated in it 100%

Paid 1.2 billion rubles for a half of the Sovcombank Sollers-Finance leasing company. As a result of the transaction the bank consolidated 100% of stocks of the leasing company.

Assessment of the company was the lowest, proceeding from the known transactions in the leasing market. Discount could be provided with rather small size of the company and also concentration of its funding on the bank. Transition Sollers-Finansa to bank reflects the outlined trend on an exit of credit institutions to more marginal spheres and also the increased sensitivity of the leasing companies to the cost of funding which reduction in cost can be reached at the expense of reference bank.

The bank redeemed 50% of shares of the company from Sollers carmaker of Vadim Shvetsov. Purchase price Sollers-Finansa corresponds 4.2 net profits (Net Income, NI) to the leasing company in a year, proceeding from IFRS on the middle of 2019.

"Business of the company in recent years was considerably diversified concerning brands of Sollers" — the bank representative noted, emphasizing preserving of joint projects with carmaker. It is supposed "to work more intensively in a segment of cars where important competences of our command of car loans are already built". At the same time in bank expect "more competitive financing sources". "Absolute accessory to bank will allow to convince creditors and investors to reduce expectations on bond yield and the credits of the company" — the representative of credit institution considers. The Fitch agency noted that this transaction will be approved with a trend on penetration of credit institutions into the high-marginal industries to compensate reduction of marginality in banking business. At the same time for the leasing company "the proximity to strong bank allows to save means and provides powerful competitive advantages"[1].

In 2018 the Region group purchased MKB Leasing company for 1.6 billion rubles (6 NI). "The Baltic leasing" upon transition to FC Otkritie bank was estimated at 8.5 billion rubles (nearly 5 NI). Thus, the Sovcombank from the known transactions redeemed a share in leasing business the cheapest way. According to the first deputy chairman of bank board Sergey Hotimsky, "the price is defined both by profit, and the capital of the company".

Small discount could be provided with the small size of the company, high concentration of funding on the Sovcombank and also which was more concentrated by the leasing portfolio in comparison with other competitors" — the top manager of one of the large leasing companies believes.

"Considering that Sollers possessed only a 50 percent share in the leasing company and also the fact that the Sovcombank was the main creditor, small discount is explainable, but it is quite comfortable for carmaker" — the senior director according to the bank ratings of RAEX Ruslan Korshunov claims. According to him, concentration Sollers-Finansa on one segment — trucks could affect assessment.

2019: 44% of obligations of the company are the share of Sovcombank

Fixed asset of funding Sollers-Finansa are bonded releases of which in the first half of 2019 76% of obligations (3.5 billion rubles) were the share. Bank loans made 14% (0.6 billion rubles). According to Fitch rating agency, 44% of all obligations Sollers-Finansa is the share of Sovcombank. The agency at the end of November, 2019 specified that the management of bank "carefully supervises" behind activity of the company and also "is involved in acceptance of strategic decisions".

Notes