Evroset mobile phone retailer may sell 30 pct of shares in IPO on LSE in 2011

Evroset mobile phone retailer may sell 30 pct of shares in IPO on LSE in 2011

MOSCOW, November 11 (RIA Novosti) - Russia' largest mobile phone and small electronics retailer, Evroset, is preparing an Initial Public Offering (IPO) to place 30 percent of its shares on the London Stock Exchange (LSE) in 2011, Vedomosti business daily reported on Thursday.

The company will make a final decision on the IPO on November 20, the paper said.

Sources close to Evroset told Vedomosti that investment banks had preliminary valued the company at $2.5-3 billion while Artyom Sitnikov, partner of Financial Consulting Group, put it at $0.85-1.2 billion according to the number of the company's selling outlets and financial results. However, investors could give a premium for the company's shares during the IPO as Evroset will be the first Russian mobile phone retailer quoted on the LSE, the paper said.

Proceeding from the lowest estimate of $0.85 billion and net of the company's debt, the share package of Evroset co-owner Alexander Mamut, who holds 50.1% in the company, could cost $260 million, the paper said.

A representative of VimpelCom, another Evroset shareholder with a 49.9% stake and one of the country's top three mobile operators, told Vedomosti that the shareholders were still discussing the IPO issue.

Vedomosti quoted its sources as saying that Mamut could sell part of his stake on the stock exchange to make his holdings more liquid, while Mamut declined to comment.

Russian Technologies Corporation Eyes State's Stake in Apatit

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Aton
November 11, 2010

State_owned Russian Technologies (RT) is interested in the government's stake in Russian phosphate rock producer Apatit, Vedomosti reports today (11 Nov).

Russian Technologies first voiced its interest in the fertiliser industry last summer when it approached Deputy Prime Minister Igor Sechin and suggested creating a fertiliser champion based on Silvinit, Sibur and TolyattiAzot.

We remind readers that the state is considering a number of options with respect to its 25% stake in Apatit's common shares - the stake is already included in its privatisation plans for 2011_13. In addition, PhosAgro, which directly and through subsidiaries controls 49% of Apatit's voting shares, wants the state's blocking stake. If successful, PhosAgro would thus avoid the danger of finding a blocking shareholder in its core asset.

Bottom line

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Press release

Russian Corporation of Nanotechnologies and Plastic Logic Inc. today announced they have entered into an agreement to create Plastic Logic's second volume production facility for its next-generation plastic electronic displays and establish a plastic electronics industry in Russia. Under the terms of agreement RUSNANO intends to make a significant investment in the company, which is the global leader in the emerging field of plastic electronics, as part of a large-scale investment project.

"RUSNANO's investment will enable us to dramatically expand operations in support of volume production of our next-generation products, and to continue to advance our technology platform to deliver on our broader long-term vision"
Plastic Logic said it will continue to house its core R&D facility in Cambridge, England, as well as maintain its commercial factory in Dresden, Germany and corporate headquarters in Mountain View, California.

Plastic Logic has developed broad and deep intellectual property in plastic electronics. Plastic electronics technology has many economic, manufacturing, form factor and environmental benefits, and will ultimately replace traditional silicon semiconductor glass-based display products in a variety of devices in the future. Plastic Logic's first application of the technology makes possible an amazingly thin, lightweight, robust and flexible active matrix display that is unmatched in the marketplace. The display is at the core of Plastic Logic's first commercial consumer electronics product, a next-generation electronic reader for business that is currently under development.

"The production facility for the next generation of plastic displays will become the first step to establish the new branch of a electronics industry in Russia. By the time of the launch, the Russian facility will be the world's most advanced fabrication plant in the plastic electronics industry," said RUSNANO Managing Director Georgy Kolpachev.

Founded in 2000 by researchers from the Cambridge University Cavendish Laboratory in the UK, Plastic Logic opened its first high-volume, state-of-the-art manufacturing facility in Dresden, Germany in 2008, where it will continue with production of the company's first commercial product.

"RUSNANO's investment will enable us to dramatically expand operations in support of volume production of our next-generation products, and to continue to advance our technology platform to deliver on our broader long-term vision," said Plastic Logic CEO Richard Archuleta.

"As a global company, we evaluated multiple countries for our expansion efforts and ultimately Russia offered the best strategic partnership opportunity," added Plastic Logic's CFO Rik Thorbecke. "Russia provides access to an enormous talent pool of scientists and engineers, and proximity to our European centers in Cambridge and Dresden. We have been very impressed with the caliber of the RUSNANO organization and, most importantly, its commitment to undertake the significant investment required to build a world-class volume production center capable of producing hundreds of thousands of units a month."

http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=291358

  Posted on » Thursday, November 11, 2010

MANAMA: Arab Banking Corporation (ABC) is opening a Moscow office on November 25, making it the first Arab bank to have a presence in Russia. The Moscow office is run by ABC International Bank, the UK-based subsidiary of the Bahrain-based ABC Group. The office aims to identify exporters and importers based in Russia, Ukraine and Belarus trading with the Middle East and North Africa (Mena) region and increase the group's share of trade and other business flows with the Mena. "ABC believes that Russia offers considerable opportunities as a result of its dynamic economic development and historical relations with the Arab world," said ABC president and chief executive Hassan Juma. "We believe that this is the right time for our group to have a presence in Russia," he added. "Our new Moscow office is a great addition to our international network and a major step in deepening our understanding of the Russian market and to assist local banks and companies in doing business with the Mena," ABC International Bank chief executive Nofal Barbar said. The bank yesterday announced a net profit of $1.6 million for the nine months ending September 30. Net profit for the third quarter was $200,000 compared to a loss of $400,000 in the second quarter. Operating expenses of $1.5m were slightly lower than the previous quarter of $1.6m. Operating profit before impairment provisions improved 5pc to reach $2.6m. Impairment provision in the third quarter was $2.4m, compared to $2.9m in the previous quarter. Total operating income for the third quarter remained at the same level as the second quarter of $4.1m. Shareholders' equity stood at $181m, compared to $171.5m at the half year. The bank's capital base remains very strong with a capital adequacy ratio of 23.3pc, predominantly Tier 1, which totaled 23.1pc. The bank's total assets declined to $1.24 billion from $1.29bn at June 30 mainly due to a decline in Murabaha receivables and Ijara assets. "Despite a further de-risking of the balance sheet, ABC Islamic Bank reported an improvement in its operating profitability," said managing director Naveed Khan. "The operating performance of the bank continues to show improvement from the previous quarter despite higher provisioning required for an old collateral linked exposure," he said. "The capital base of the bank also remains strong with a Capital Adequacy Ratio greater than 23 per cent," he added. Russia enters Formula 1 as company takes ‘significant stake’ in Virgin team http://en.rian.ru/russia/20101111/161281966.html 03:05 11/11/2010 Russian sports car manufacturer Marussia Motors has acquired a "significant stake" in UK-based Virgin Racing to create a Russian Formula 1 team, Marussia's President Nikolai Fomenko said in an interview with RIA Novosti on Thursday. “Now we can state with full certainty that we have our team in Formula 1,” said Nikolai Fomenko, one of four co-owners of Marussia Motors. “Of course, it was not an easy decision for us. I’m not entitled to disclose the contract value, but it’s big money, believe me.” The contract between Marussia Motors and Virgin Racing was signed in London on November 6. The deal is the second attempt to create a Russian national team in Formula 1. In 2005, Midland group owned by Russian-born businessman Alex Shnaider attempted to create an F1 team, but after the unsuccessful debut in 2006, Shnaider sold the team to Dutch car manufacturer Spyker Cars NV. The new team, which will be called Marussia Virgin Racing starting from 2011, will honor all existing contracts of Virgin Racing, including those with drivers Timo Glock and Lucas di Grassi, as well as with engine producer Cosworth. The Russian company aims to make the team competitive in the coming years, after it earned no points during this season. “This will prove that Russian high technologies are not only in the military and space industries, but also in the car making sector. And this will benefit the entire country,” Fomenko said. The official presentation of the next season’s race car, which is currently being built at Virgin’s base in Britain, will be held in late January-early February in London. The car will also be presented in Moscow. “We are actively participating in the creation of a Marussia Virgin race car for the next season and we have everything we need for that,” he said. Fomenko also invited leading Russian companies to sign sponsorship contracts with the Russian team. “So far, the company has made no steps towards [potential] sponsors and has not sought any help, though this may come in handy,” Fomenko said. The announcement is the latest in a series of news, which demonstrates that the Russian leadership is taking a growing interest in Formula 1, which along with FIFA World Cup and the Olympic Games is in the top three of the world’s most popular sporting events. Last month, Russia signed a multimillion dollar agreement with F1 to stage a Grand Prix near the Black Sea resort city of Sochi between 2014 and 2020. On Sunday, Russian Prime Minister Vladimir Putin tested his skill as a Formula 1 pilot, driving a race car for several hours at a speed of 240 km/ h (150 miles per hour) on a special track in the Leningrad Region in Russia's northwest. This spring Russia’s first Formula 1 driver Vitaly Petrov made his debut competing for the Renault F1 team. Fomenko said that he would like to see Petrov, who is unlikely to have his contract with Renault extended for the next season, as a Marussia Virgin Racing driver, but added that it was too early to speak about that. “Today I am unable to provide him with a competitive car. And he needs to continue his career in a fast car. Just wait for one more season. Then everything will be clear,” he said. MOSCOW, November 11 (RIA Novosti) Russian carmaker to take over F1 team http://www.ft.com/cms/s/0/00122716-ed00-11df-9912-00144feab49a.html?ftcamp=rss#axzz14xaoENVI By Roger Blitz in London Published: November 11 2010 00:02 | Last updated: November 11 2010 00:02 Virgin Racing, the Formula One team backed by UK entrepreneur Sir Richard Branson, is being taken over by a Russian sports car manufacturer, in a move highlighting the country’s interest in the global reach of the sport. Marussia, set up by former racing driver Nikolai Fomenko, is buying up most of the stake bought less than a year ago by LDC, the private equity arm of Lloyds Banking Group. Virgin remains part-investor in the team. Virgin Racing is one of three new outfits in this year’s F1 season and operates on a £40m ($64.4m) budget, which is one of the lowest of the 13 teams on the grid. Marussia said it is becoming the majority shareholder of Virgin Racing but declined to reveal the size of the stake or the amount it is paying. The takeover comes a month after Russian prime minister Vladimir Putin signed a seven-year deal with Bernie Ecclestone, F1’s commercial director, under which the Black Sea resort of Sochi will join the Grand Prix circuit from 2014. Andrey Cheglakov, a co-investor in Marussia, said: “We are showing to the world that we are ready to participate in such a highly regarded event as F1.” He added that Marussia would seek permission to combine its brand with Virgin in the team name. “Virgin is a strong name worldwide and can get the attention of millions of people, but by combining the brands we can expect to gain better recognition for the team itself,” he said. In a statement to be released on Thursday in Abu Dhabi, which on Sunday hosts the final grand prix of the season, Sir Richard will say the deal “cements our place on the F1 grid”. Virgin Racing was formed last December by Yorkshire-based Manor Grand Prix, Virgin and Nick Wirth, an F1 technician. LDC is thought to have invested £10m in the team at the time. Announcing its investment last year, LDC said “the prospects of healthy profits and return on investment are excellent”. The three new teams – Virgin Racing, Hispania and Lotus – have struggled in their first F1 season, failing to pick up a single point. Mr Ecclestone said last week that the performances of the new teams were an embarrassment to the sport. LDC is retaining a “significant shareholding” in Virgin Racing. Marussia, set up by Mr Fomenko in 2007, became an official sponsor of Virgin Racing in December. Mr Fomenko, who anchors Russian Top Gear, the TV programme, said F1 would be “a powerful marketing stage for our new company. We want want it to be a symbol of pride, self-belief and inspiration for the people of Russia”. Mr Cheglakov said that Marussia would compete with Ferrari, Aston Martin and Porsche in the European sports car market and planned to sell 2,000 cars a year from 2013 or 2014, up to a fifth of which will be sold in Russia. Additional reporting by Martin Arnold and James Allen in London Fiat's Magneti Marelli expands in Russia http://www.businessweek.com/ap/financialnews/D9JDA9O81.htm MILAN Fiat's auto parts supplier and subsidiary Magneti Marelli says it has opened a new plant in Russia with the goal of becoming one of the region's major players. The plant near the city of Ryazan, 200 kilometers (124 miles) southeast of Moscow, will make car rearlights and headlights, reaching a capacity of 2 million pieces annually for automakers in Russia, including Autovaz, Gaz and Sollers as well as Renault, Volkswagen and Ford. It joins another Magneti Marelli lighting plant built nearby in 1995. "Our goal is to become a leading player in the sector of automotive components in Russia, the only market that is currently showing an upward trend in Europe and one of the most important ones at the global level," CEO Eugenio Razelli said in a statement Wednesday. VTB Capital takes ECM title from Renaissance Capital http://www.emergingmarkets.me/2010/11/vtb-capital-takes-ecm-title-from-renaissance-capital/ November 11, 2010 By Ivan Anderzhanov VTB Capital was named the leading equity bookrunner in November for Russia and the CIS, outscoring Renaissance Capital,  acccording to data providers Dealogic and Thomson Reuters. VTB took part in a total of 7 transactions so far this year, attracting an aggregate  amount of nearly $4.7bn for the clients, said Dealogic. The VTB Capital market share according to Dealogic is 14.63% while Thomson Reuters put its at 18.5%. This year, VTB Capital has participated in key ECM deals, including IPOs for Mail.ru, О’Key, Russian Sea, Rusal, and second offerings for Synergia, LSR Group, rights issue for Deutsche Bank and TMK convertible bond issue placement. Moscow rival Renaissance Capital has traditionally been the leading underwriter for equities in Russia and the CIS. VTB Capital, which is the leading underwriter for local debt and Russian eurobonds, now holds the crowns for both DCM and ECM. For the Record http://www.themoscowtimes.com/business/article/for-the-record/422211.html 11 November 2010 RusAl is in talks with investors on a joint bid for Vladimir Potanin’s stake in Norilsk Nickel, RIA-Novosti reported Wednesday, citing a source familiar with RusAl’s plans. (Bloomberg) Magneti Marelli, the auto-parts division of Fiat, aims to expand in Russia where it wants to become “a leading player,” chief Eugenio Razelli said Wednesday, during the opening of a lighting plant in Ryazan. (Bloomberg) Yekaterinburg-based Urals Nickel, owned by Dmitry Baskov, plans to hold an initial public offering and list its shares on MICEX, the company said Wednesday. (Bloomberg) Raspadskaya will resume output at its main mine by the end of the year, chief Gennady Kozovoi said Wednesday, according to the Kemerovo regional administration. (Bloomberg) Mitsubishi Heavy Industries, Sojitz and China National Chemical plan to build a $1.06 billion chemical plant in Russia, Nikkei English News said Wednesday. (Bloomberg)

Activity in the Oil and Gas sector (including regulatory)

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