Andrei Molchanov gets rid of the developer business

The entrepreneur sold 9.71% of the shares of LSR Group. He needed money for "personal needs."
The Chairman of the Board of Directors of LSR Group, Andrei Molchanov, sold 9.71% of the shares of a real estate development company. A day earlier, it was assumed that he would get rid of 5.53%. The transaction will help LSR increase the liquidity of the shares and obtain financing for the construction of escrow accounts from banks.

Chairman of the Board of Directors of LSR Group Andrei Molchanov sold 9.71% of the shares of the developer for 5.8 billion rubles. Yesterday, the developer announced his intention to sell 5.53% of the shares, but plans changed, including due to the high interest of investors, LSR reports.

After completion of the transaction, the share of Andrey Molchanov in the authorized capital of LSR will be about 50.33%, and the share of securities in free float will increase to 41.57%. A Kommersant source close to Mr Molchanov says that the businessman needs the funds from the transaction for personal purposes, and the sale of shares was planned a long time ago.

At the same time, the transaction should provide greater liquidity of the shares, clarified in LSR.

Some time ago, LSR shares were excluded from the Moscow Exchange index due to the low trading volume. After the shares return to the stock market index, LSR will increase the negotiation resource with banks for obtaining project financing using escrow accounts. Amendments to the sectoral legislation suggest that developers who sell apartments under equity participation agreements (DDU) must, from July 1, 2019, work with equity holders through escrow accounts. Companies will receive funds only after the delivery of the project, and it is proposed to finance the construction using preferential loans from banks. When deciding on the issuance of financing, banks also consider stock quotes.

Recently it became known that several large companies can get relief from the government when switching to escrow accounts. The same thing was said yesterday by the head of the Ministry of Construction Vladimir Yakushev and Deputy Prime Minister Vitaly Mutko. To be able to work under equity agreements, companies must build at least 4 million square meters per year. meters of housing in at least four regions.