Onexim

Aktivs

ONEXIM Group, established in 2007, is one of the leading Russian investors, which manages the assets of companies in such industries as finance, power, metallurgy, media, etc.

The assets of the ONEXIM investment fund were acquired in the late 2000s: Mikhail Prokhorov completed the process of withdrawing from Norilsk Nickel's common with Vladimir Potanin, having received from $7 billion to $9.5 billion and shares in several companies under the terms of the agreement. At this time, the attention of Russian investors was enjoyed by several niches: the electric power industry and high technologies, plus the invariably popular sport. ONEXIM invested about 65 billion rubles in these three niches. Subsequently, finance, chemistry, media, and automotive were added. The total amount of investments exceeded $5 billion (more than 300 billion rubles). As a result, by mid-2016, all these assets of Prokhorov generated about 47 billion rubles in losses^[1].

Data for July 2016^[1]

• OK RUSAL is the world's largest producer of aluminum and alumina (in the fall of 2016, it announced a reduction in its share in the company from 17% to 5%).
• Intergeo Management Company - Mining and Metallurgical Company
• Consent - major insurance company of Russia
• Quadra (former TGK-4) is one of the key enterprises in the power supply system of the European part of Russia
• RBC is a media company.
• International Financial Club - Universal Russian Commercial Bank
• Renaissance Financial Holdings is a leading investment banking group in Russia, Ukraine, Central Asia and Africa.

History

2023

Transfer of Renaissance Credit Bank as a pledge of the Central Bank of the Russian Federation

In February 2023, it became known that Onexim Mikhail Prokhorov pledged 100% of Renaissance Credit Bank to the Central Bank of the Russian Federation as part of structuring the group's debt.

Prokhorov transferred the ownership structure of Renaissance Credit Bank to Russia

The group Onexim"" Mikhail Prokhorov changed the ownership structure of Renaissance Credit Bank. 99.99% of the share of the owner of Treasurer-Finance Investment was transferred to Onexim Group LLC, and 0.01% remained with Renaissance Capital - Financial Consultant LLC. He drew to this on February 8, 2023, "" Interfax referring to the data of the Unified State Register of Legal Entities (Unified State Register of Legal Entities). here More.

2022: Sale of former MoD land on Rublevskoye Shosse for billions

In mid-September 2022, it became known that the Onexim group of billionaire Mikhail Prokhorov sold a former military town on Rublevskoye Shosse to the development company St Michael. Experts interviewed by Vedomosti estimated the value of the asset at 1.7-2 billion rubles. At the same time, in 2008, the Ministry of Defense sold this property for 2.6 billion rubles, the newspaper points out.

A spokesman for St Michael confirmed to the publication that the site is now part of the developer's land bank. The details of the transaction and the parameters of the project planned there were not reported, specifying only that now the architectural bureau UNK Architects is developing a concept. His spokesman confirmed this.

Mikhail Prokhorov was discharged from Rublevka

According to Alexei Dubeikovsky, deputy director of Ricci 'M&A, at the former site of the Ministry of Defense, a developer can build a residential complex with a total area of ​ ​ 220,000 square meters. m, and if he attracts a large fee-developer as a partner and with him can achieve better conditions for the purchased site, then the building area will grow to 300,000 square meters. m Est-a-Tet commercial director Vladimir Morebis said of the 240,000 sq m development. Irina Dobrokhotova, managing partner of Dombook and chairman of the board of directors of Best Novostroy, estimates investments in the new project at 20-40 billion rubles, depending on the class and concept of the residential complex, and Morebis at 35-45 billion rubles.

The potential revenue from the sale of apartments can reach 90-98 billion rubles, calculated Timur Ryvkin, director of the Nikoliers land development department. There is no infrastructure within walking distance from the site, so St Michael will have to invest in its creation, Dubeikovsky noted. Dobrokhotova also recalled a competing project in this area - the city of "Sberbank" with a preliminary area of ​ ​ 4 million square meters. m. In her opinion, the success of the St Michael project will depend on the adequacy of apartment prices.^[2]

2018

Prokhorov will sell his stake in Rusal to Vekselberg and Blavatnik

The Onexim group of Mikhail Prokhorov agreed in early 2018 to sell a 6% stake in Rusal to the Zonoville Investments Limited consortium, which is headed by Viktor Vekselberg and Leonard Blavatnik^[3]

After the transaction, they will own 26.5% of Rusal's shares, that is, a blocking stake, Vedomosti writes.

The amount of the transaction is not named.

In different years, Mikhail Prokhorov owned from 14% to 17% of Rusal's shares. In 2017, he sold Vekselberg and Blavatnik a 7% stake.

2017

Grigory Berezkin bought a controlling stake in RBC

Grigory Berezkin bought a controlling stake in RBC media holding from Mikhail Prokhorov, the parties announced on June 16, 2017. ESN structures acquired a 65% stake in the media holding, representatives of Berezkin and Prokhorov refused to disclose the financial parameters of the transaction. See RBC's History for more details.

One of the reasons for the sale of assets may be increased pressure on Mikhail Prokhorov - allegedly federal officials were dissatisfied with the independent editorial policy of the publications of the RBC media holding and their journalistic investigations. The same is associated with searches and seizure of documents at the head office of Onexim, which the FSB and the Federal Tax Service conducted in April 2016 in connection with "possible tax evasion."

Sale to Brooklyn Nets

In April 2017, Prokhorov put up for sale a 49 percent stake in the Brooklyn Nets basketball club.

Purchase 24.99% "Shoes of Russia"

The only acquisition of Mikhail Prokhorov in recent years is the purchase of 24.99 percent of the shares of the company "Shoes of Russia," which is one of the ten largest domestic shoe sellers. According to experts, the cost of this package is from 1.2 to 1.8 billion rubles. Perhaps the businessman expects to sell his shares during the upcoming IPO, which is scheduled for autumn on the Moscow Exchange.

Shares of the aluminum holding UC Rusal owned by Mikhail Prokhorov passed to Viktor Vekselberg

Zonoville Investments Limited bought 7 percent of UC Rusal, the world's largest aluminum producer, from Mikhail Prokhorov's structures in August 2017. The beneficiaries of Zonoville Investments Limited are several shareholders of another large minority shareholder of the aluminum holding - SUAL Partners, including the main owner of Renova, Viktor Vekselberg. It was Vekselberg who was named the guarantor of the buyer in the message about the transaction, while Mikhail Prokhorov acts as the guarantor of the seller.

Sale of Snob Magazine

In September 2017, it was announced that the Onexim group of billionaire Mikhail Prokhorov sold the Snob publication to Marina Gevorgyan, General Director of Snob Media LLC.

In a statement, Onexima said the group had decided to dispose of media assets as part of its investment strategy. "Snob" remained the last such asset of "Onexima."

2016

Vedomosti: Mikhail Prokhorov decided to sell all Russian assets

In early June 2016, the FSB conducted searches at the head office of the company. Later, the FSB reported that this was due to the Tavrichesky bank, which will sanitize the IFC controlled by Onexim. But sources surrounded by the owner of Onexim Prokhorov and federal officials said that the searches were an act of intimidation: the Kremlin was unhappy with the editorial policy of the RBC media holding owned by Onexim. After that, Vedomosti sources reported that Prokhorov was going to sell Russian assets. It is incorrect to conclude on the basis of the fact of negotiations about the "sale of all assets in Russia." We did not make any "decisions on this topic" - this is how the general director of Onexim Dmitry Razumov reacted to this information.

Sale of 20% in Uralkali

In July 2016, Onexim sold a 20% stake in Uralkali to Belarusian businessman Dmitry Lobyak. The amount of the transaction was not disclosed.

Sale of 12% of UC Rusal out of 17% for $700 million to Vekselberg and Blavatnik

In October 2016, it became known that Onexim Mikhail Prokhorov would sell 12% of UC Rusal for $700 million. The package is bought by the co-owner of the company - Sual Partners Viktor Vekselberg and Leonard Blavatnik.

Onexim began looking for a buyer for a stake in UC Rusal after the FSB conducted searches at the head office of the company in early June 2016.

For about 12% of the available 17% stake in UC Rusal, Onexim will receive about $700 million, three sources close to different sides of the upcoming deal said. Thus, the share of Sual Partners will grow from 15.8 to 27.8%. En + Oleg Deripaska at this time controls 48.13% UC^[4].

The deal could close by the end of November, says a source close to one of UC Rusal's shareholders. The price of $700 million for 12% assumes a premium to the current market price of 17.3%. If aluminum, which is now trading near $1600 per 1 ton (about 6% below annual highs), begins to rise in price, then UC Rusal may cost more and then it cannot be said that this is a very good premium, says the manager of the investment fund, which is also invested in the securities of metallurgical companies.

But at this time, there are no special prerequisites for rising metal prices - in China it is still an excess, the source said.

At the same time, Onexim manages to receive $42.55 million in dividends from UC Rusal - the second in almost six years. On October 25, 2016, creditors allowed UC Rusal to pay $250 million in interim dividends. The register closed on October 3. Payments are scheduled to be completed on October 31. The same amount - $42.55 million - Onexim received from UC Rusal in 2015.

Sual Partners buys 12% of UC Rusal to keep the shareholder agreement. According to it, the share of Onexim should not decrease by less than 5%. In addition, such a package allows him to nominate one candidate to the board of directors of Norilsk Nickel, which UC Rusal will be obliged to conduct. Until the summer of 2010, Razumov was such a candidate. After that, representatives of Onexim were not elected to the council. In addition, the purchase of the entire stake would lead Sual Partners to the need to offer an offer to the rest of UC Rusal's shareholders. If you buy 12%, you won't need it.

Sale of OPIN in Rossium by Roman Avdeev

On December 27, 2016, the ONEXIM group of Mikhail Prokhorov announced the closure of a deal to sell a 90.99% stake in the development company OPIN to the Rossium concern, owned by the main owner of the Moscow Credit Bank, Roman Avdeev. He received the rights to the developer's land bank and all development projects, including the project for the reconstruction of the Torpedo stadium in Moscow. The amount of the transaction was not disclosed. It is possible that Mr. Prokhorov gave most of the assets of OPIN for debts. See OPIN for details.

2013: Closure of the Live! media group and sale of a package in Polyus Gold

• In January 2013, the end of the work of the media group "Live!" Was announced. The project was declared unsuccessful.

• In February 2013, it became known that the Onexim group of Mikhail Prokhorov sold 37.78 percent of the shares of the gold mining company Polyus Gold International Limited to the structures of the deputy Zelimkhan Mutsoev and the former co-owner of Wimm-Bill-Dann Gabriel Yushvaev.

18.5 percent of Polyus Gold's share capital was sold to Mutsoev-affiliated Lizarazu Limited for $1.7 billion. The group sold another 19.28 percent of the shares in the gold mining company to Yushvaev-affiliated Receipt Limited for $1.846 billion^[5].

Onexim may use the proceeds from the sale of Polyus Gold shares to buy a stake in Rostelecom. It is reported by RIA Novosti with reference to unnamed sources. This week, the media reported that Prokhorov's structures began negotiations on the purchase of a stake in a state telecom operator.

Suleyman Kerimov, who already owns 40.2 percent of the shares of the gold mining company, was considered the main contender for Prokhorov's stake in Polyus Gold. Russian business media at the end of January wrote that Mutsoev and Yushvaev would be the buyers of the share.

According to unconfirmed information, the latter attracted Kerimov to the deal so as not to put the offer to minority shareholders. The law obliges to declare an offer if control over the company passes to one entrepreneur or consortium of shareholders.

At the end of January, the British merger and acquisition regulator Takeover Panel decided to check the sale of Prokhorov's stake in Polyus Gold to Mutsoev and Yushvaev. The agency intends to find out whether the deputy and businessman are partners, as well as whether they are connected with Kerimov.

• The assets of ONEXIM Group at that time included and/or were under management (February 2013):

• OK RUSAL is the world's largest producer of aluminum and alumina (in the fall of 2016, it announced a reduction in its share in the company from 17% to 5%).
• Intergeo Management Company - Mining and Metallurgical Company
• Quadra (former TGK-4) is one of the key enterprises in the power supply system of the European part of Russia
• OPIN is a leading Russian investment and development group
• Consent - major insurance company of Russia
• RBC is a media company.
• International Financial Club - Universal Russian Commercial Bank
• Renaissance Financial Holdings is a leading investment banking group in Russia, Ukraine, Central Asia and Africa.
• Optogan is a Russian manufacturer of LEDs
• e-AUTO is a company developing a hybrid car for urban needs
• Witology is a company developing a new type of social platform

2012: Onexim buys Renaissance Capital in full

On November 14, 2012, it became known that the Onexim group of Mikhail Prokhorov agreed to buy out the shares of Renaissance Group in Renaissance Capital Investments Limited (RCIL), Renaissance Capital Limited (RCL) and Renaissance Capital International Services Limited (RCISL).

Thus, as a result of the transaction, Onexim will become the indirect owner of 100 percent of Renaissance Capital investment bank and 89 percent of Renaissance Capital International Services Limited (RCISL), a consumer lending bank that operates under the Renaissance Credit brand in Russia. The value of the deal was not disclosed.

Until the transaction was completed, Onexim owned 50 percent minus half the shares of Renaissance Capital, bought at the height of the 2008 crisis for half a billion dollars, as well as 32.25 percent of Renaissance Credit. The second half in Renaissance Capital belonged to the managers of the company led by Stephen Jennings (Renaissance Group, 50% plus 1/2 shares).

In early October, Газета.ру wrote that the owners of Renaissance Capital are looking for buyers for the asset. After the publication of the material, the management of the investment bank threatened the publication of the court for slander, calling the information about the sale untrue and discrediting the company's reputation. The founder of the financial organization, Stephen Jennings, said in an interview with the Vedomosti newspaper: "I can swear that we do not sell, sell or want to sell it [Renaissance Capital]."

Negotiations began about a week before December 14, when the deal was announced, Vedomosti sources said. Renaissance Capital's position was sustainable, according to a person familiar with the transaction, but on November 6, Moody's told the bank that it planned to downgrade it (and downgraded it on November 9), and Jennings entered into negotiations.

According to the manager of the state bank, a certain Renaissance Capital rating could be a condition for repo transactions; with its reduction, the paper could be presented for early repayment. This is not just a few letters, supports the idea of ​ ​ a top manager of a large broker: the lower the rating, the smaller the line on the repo, it can automatically decrease to several million dollars. There was no money to repay, continues the manager of the state bank, and Renaissance repo transactions - for hundreds of millions of dollars.

A person close to Onexim explains: "Renaissance repo deals are not tied to a rating, but they periodically require an extension, and the rating could affect them." In addition, Renaissance had a danger of cash gaps in November-December, he continues, the bank needed cash, and Jennings did not have it.

According to three people familiar with the negotiations, Jennings turned to his partner, the Onexim group, for money. One of them is convinced that Jennings wanted to scare Onexim with a rating cut in order to get a "cash cushion."

But Onexim refused, say two of Jennings' acquaintances and a manager of the state bank. The reason is very simple, according to Jennings' acquaintances: Onexim was unhappy with the fact that, in fact, it finances a unprofitable company, but does not participate in the operational management of it. The investment bank was unprofitable both in 2010-2011 and in the first half of this.

"We were ready to help, but on market conditions and in compliance with all procedures, as well as with a normal loan pledge," says a person close to Onexim. But Jennings from the board of Renaissance Credit Alexei Levchenko went to the Central Bank, say several Vedomosti interlocutors. According to a person close to Onexim and the former manager of Renaissance, the regulator was ready to help, but not immediately. Two acquaintances of Jennings refute this: the Central Bank refused, stating that one of the shareholders of Renaissance has significant liquidity, and invited the shareholders to figure it out among themselves.

Jennings, according to his friend and manager of the state bank, told the Central Bank that he had a difficult repo situation, this could poorly affect the market, and warned that the collapse of Renaissance would be an image loss for the Central Bank, but he considered it different: for the market it would be uncritical.

One of Jennings' acquaintances claims that he wanted to find money in the Central Bank to buy out Onexim's stake: there was an agreement between the partners that one of them should buy out the business if things did not go well.

After Jennings's campaign in the Central Bank, the situation began to develop rapidly, it became clear that someone should leave Renaissance, says a person close to the bank's management, and there was also a danger that state-owned banks, without understanding, would begin to close Renaissance repo.

On November 9, 2012, rumors of a rating cut began to leak to the market in the morning. There are also rumors that Jennings is looking for funding, remembers a person close to the leadership of Renaissance. But Jennings did not want to go out of business, he continues, and even warned that the bankruptcy of Renaissance would lead to a loss of funds by everyone. Later it became clear to him that bankruptcy is too big a headache, recalls a person close to the leadership of Renaissance.

The idea to give a share to Onexim was also his, says a top manager of a state bank - and quotes Jennings: either you take the company, or you lose money.

Jennings risked default and, not finding support on the side, chose to sell us so that we could understand, concludes a person close to Onexim^[6]

2010: Purchase of a controlling stake in RBC

In 2010, 51% of the shares of RBC's parent company, RBC-TV Moscow, were acquired for $80 million.

2008: Purchase of half of Renaissance Capital investment bank

In September 2008, 50% minus 1/2 shares of Renaissance Capital investment bank were acquired for $500 million.

Notes