VTB ahead of schedule reduced its stake in En + Group

Oleg Deripaska bought out 2.4% stake in the group.
26.12.2017
Kommersant
Origin source
VTB, which became a shareholder of En + Group Oleg Deripaska in 2011, sold 2.4% of the group's shares from its stake of 3.8%. Papers on the forward agreement with the bank bought the "Basic Element" of Mr. Deripaska. Details of the deal, including the price of redemption, are not disclosed, but analysts do not exclude that to buy this package, which is worth $ 192 million, Oleg Deripaska could attract loan financing.

VTB cut its stake in En + Group Oleg Deripaska from 10.06% to 7.65%, the bank said. VTB became a shareholder of En + in 2011, when its investment division VTB Capital received 4.35% of the group for $ 500 million to repay the debt of Basic Element of Mr. Deripaska (the group was valued for a deal of $ 11.5 billion). After En + IPO in November 2017, during which shares from the main shareholder's package and new shares were sold, the bank's share decreased to 3.81%. At the same time, VTB credited Singapore-based AnAn Group, which was connected with the Chinese company CEFC, which bought 6.25% of En + for $ 500 million and mortgaged this package to the bank by repo.

In the prospectus to the IPO En + disclosed that in December 2013, the structures of Oleg Deripaska entered into a forward agreement with VTB, according to which the businessman can buy the shares of En + from the bank until the middle of December 2018, and 7.7% of En + (total The collateral for VTB loans was 32.55% of En +). Kommersant sources said in October that VTB did not plan to sell shares during the placement, but "since it is a quasi-long debt of En + to the bank, VTB will most likely sell its stake in the group in the future."

VTB told Kommersant that "after a successful IPO, seeing a strong demand and a large potential for growth in the shareholder value of En +, the Basic Element group decided to partially fulfill the forward contract ahead of schedule." In the "Basic Element" and En + did not answer the calls "b". The amount of the deal and details for the forward are not disclosed, on December 25, 2.4% of En + were worth $ 192 million on the London Stock Exchange.

VTB has 1.4% stake in the group, and, as En + revealed, the head of investment banking in global markets, VTB Riccardo Orchel will remain on the board of directors of the group until the bank is its shareholder.

Oleg Deripaska's stake in En + after the deal, according to Kommersant estimates, rose to 67.6%. Based on quotations for December 25, such a package is worth $ 5.4 billion.

After the placement, during which En + raised $ 1 billion (another $ 500 million of paper was sold by Mr. Deripaska), the group repaid ahead of schedule its debt to VTB in the amount of $ 942.6 million. Oleg Petropavlovski from BCS agrees that the forward agreement is a "quasi-long" as a rule, it contains a premium to the bank. Therefore, it can not be ruled out that the "Basic Element" is oriented not only to the growth potential of En + capitalization, but also to cheaper loan financing, on which it is possible to lay the repurchased package, the analyst says.

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