"Vedomosti" has become aware of the imminent sale of "System" shares of "Etalon"

In the near future, almost 30% of the capital of the development group Etalon Vyacheslav Zarenkov will change the owner, they learned Vedomosti. The buyer is one of the System structures

Vyacheslav Zarenkov

(Photo: Sergey Kulikov / Interpress / TASS)

One of the structures of AFK Sistema has agreed to buy most of the shares of the Etalon development group, which belongs to the family of businessman Vyacheslav Zarenkov, the Vedomosti newspaper, citing sources close to both sides of the agreement. According to the interlocutors of the publication, the parties have already agreed the basic parameters of the transaction, can be announced in the coming days.

The family of Zarenkov, founder of Etalon, holds 30.7% of the shares of the developers, but Sistema does not intend to buy the entire package, the sources said. The owner will be replaced by less than 30% of the shares, which will allow the System not to submit a mandatory offer for the purchase of shares of other shareholders. The official announcement of the transaction could follow the meeting of the Board of Directors of "Etalon", to be held on November 9th.

The publication was not able to obtain official confirmation of this information from the participants in the transaction.

Over 60% of Etalon's shares in the form of global deposit receipts are traded on the London Stock Exchange, another 5.7% belong to the Baring Vostok Capital Partners fund. The interlocutors did not disclose the transaction amount, however, based on stock quotes, the newspaper suggests that the Zarenkov family package costs around $ 192.9 million.

In July, the agency Reuters, citing three sources, reported that the top managers of the company, CEO Dmitry Kashinsky and the head of the financial administration Kirill Bagachenko, wanted to buy the share of Zarenkov and his family in Etalon. At the same time, the message of "Etalon" stated that in this case it could not be a matter of full redemption of the quota of Zarenkov. At the same time, a company representative acknowledged that other top managers are also interested in acquiring the company's shares. "I am aware of the interest of the top management of the company in acquiring the shares of the Group, and I fully support it, I am ready to consider the possibility of selling part of my share to the management", said Zarenkov, citing the Etalon press service.

Two other sources then reported to Reuters that in spring Zarenkov, with the participation of Sberbank, was negotiating a possible sale of the stake with Sistema. The buyer was to be a "daughter" of "System" "Leader Invest". According to one of the interlocutors, Sberbank has approved the opening of a line of credit to a potential buyer. However, in the "Leader Invest" agency it stated that the credit line is open for purchases without specifying a specific company or project.

The Etalon group was founded in 1987 by Vyacheslav Zarenkov. According to the company, its revenue in 2017 amounted to 70.6 billion rubles, EBITDA – 13.2 billion rubles.

In November 2017, the Baring Vostok Fund and the family of the founder of the Etalon Group development company Vyacheslav Zarenkov sold 28 million global deposit certificates (GDR) for developer actions on the London Stock Exchange. The revenue sold represented about 9.5% of the company's capital, consequently the company increased the free float to 61.4%. The placement price was $ 3.4 per receipt. The total value of the shares sold was $ 95.2 million.

Etalon Group Management Company is one of the largest housing contractors in Russia and works in the residential real estate market in Moscow, St. Petersburg, as well as in the Moscow and Leningrad regions. The group, in particular, includes the St. Petersburg building that holds LenSpetsSMU, as well as other companies that implement all phases of the investment and construction process – from the development of a plot of land to the operation of real estate. finished.

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