Founder of Yota will take away the last asset of Magomedov for debts

Albert Avdolyan takes away for debts the last major asset of Ziyavudin Magomedov - the Yakutsk Fuel and Energy Company. The founder of Yota plans to build a cluster in Yakutia on the basis of YATEC and the Elga Mechel field.
Origin source
How Avdolyan will receive the last asset of Magomedov

As RBC learned, A-Property, owned by the founder of the telecommunications operator Yota, Albert Avdolyan, will receive the Yakutsk Fuel and Energy Company (YATEK) controlled by Ziyavudin Magomedov for debts. This is the last major asset of a businessman who was arrested in March 2018 on charges of organizing a criminal community.

On Friday, September 13, an extraordinary meeting of YATEC shareholders will be held, the agenda of which is the approval of major related transactions and related party transactions with alienated or acquired property, the company said. Among these transactions are agreements to terminate counterclaims in the amount of not more than 8.26 billion rubles. (in particular, the company sued LLC Investor, through which Magomedov owns 82.06% of its shares, demanding about 6 billion rubles from her), about transferring a debt of no more than 7.71 billion rubles. and the assignment of A-Property in the amount of not more than 550 million rubles, is indicated in the document.

In fact, it is about collapsing the debts of the Yakut company to Avdolyan’s structure and transferring control over YATEC to it, a source close to one of the parties to the negotiations told RBC. A-Property will become the new shareholder of YATEC, a person close to the other side confirmed. Magomedov agreed to the alienation of his share, he said.

The price of the property to be disposed of under related-party transactions will total 16.82 billion rubles, or 68% of the book value of the assets of YATEC as of June 30, 2019, follows from the documents.

“A-Property” has been buying up YATEK's debts since the end of 2018 - to Sberbank (for a total of 4.4 billion rubles), for which a controlling stake was laid, VTB (5.1 billion rubles) and Russian Agricultural Bank (about 1 billion rubles), Avdolyan's acquaintance told RBC in January 2019, noting that all the requirements were purchased without discount. Since then, A-Property has bought at least the debt of the company to the Russian “daughter” Bank of China (0.9 billion rubles). This follows from the materials of the YATEC bankruptcy case, in which the Arbitration Court of Yakutia introduced a monitoring procedure for the company.
How Magomedov was losing assets

In early October 2018, it became known that Transneft bought from Ziyavudin Magomedov and his brother a share in the Novorossiysk Commercial Sea Port for $ 750 million. A few weeks later, FESCO (one third of Magomedov’s company) sold VTB about 25% of the largest container operator Transcontainer ", But the transaction amount was not disclosed. And in February 2019, VTB became the owner of 50% minus one share of the United Grain Company, which previously belonged to the Summa group of Magomedov. “Thus, a significant part of Summa's obligations in the construction sector to the bank was settled,” RBC explained in the press service of VTB.

The total debt of the Yakut company amounted to about 14 billion rubles. with EBITDA of 3 billion rubles, said in an interview with RBC the chairman of the board of directors of YATEK Leyla Mammadzade, asset manager of Magomedov, in October 2018. According to her, prior to the arrest of Magomedov, it was assumed that the shareholder could provide financial assistance to YATEK. But after a criminal case was initiated under an article involving the confiscation of property, all of the businessman’s accounts were arrested and he could not help the company pay its debts.

Magomedov’s lawyer Alexander Gofshtein and a representative of YATEK declined to comment. The press service of “A-Property” RBC said that so far it has been decided not to comment on any issues related to YATEC.

Why did the founder of Yota YATEK

At the end of August, A-Property representative Anastasia Kharitonova told RBC that Avdolyan and his long-time partner Sergei Adonyev, with whom they created Yota, are systematically forming an industrial cluster in Yakutia, which includes the Yakutsk Fuel and Energy Company, the Ogodzha coal project and the port of Vera . A logical step in this strategy is the acquisition of a stake in Elgin coal project, which is controlled by Mechel Igor Zyuzin (51%), and Gazprombank put up another 49% for sale, she added. It was on that day that it became known that A-Property applied for the purchase of this stake to the Federal Antimonopoly Service, but Mechel has a priority right to redeem the bank's stake within a month.

Buying debts, followed by converting them into YATEC shares, is not a speculative transaction, an acquaintance of Avdolyan told RBC. According to him, a businessman acquires a company in order to develop it. YATEK produces and supplies gas to central Yakutia, including Yakutsk, and also produces gas condensate and partially processes it at a mini-refinery; fuel is used for deliveries through the northern delivery. The main asset of the company is the Srednevilyuyskoye field with reserves of about 140 billion cubic meters. m of gas and 7.4 million tons of condensate. Since the company's fields are far from a single gas transmission system, we are talking about different redistribution of gas - gas chemical production, as well as liquefaction, the source told RBC.

In the beginning of 2018, a few months before Magomedov’s arrest, his Summa group announced that it was going to attract a Chinese partner for the construction of a large gas chemical complex - a methanol plant using Haldor Topsoe technology, investment in construction and production was estimated at $ 1.4 billion. But after the arrest, the negotiations were completely frozen. “The project itself is very good, I firmly believe in it, but it will require $ 1 billion or, if even part of the projects be cut, a minimum of $ 750-800 million,” said Mammadzadeh RBC. According to a Forbes magazine rating published in the spring of 2019, the general fortune of Avdolyan and Adonyev was estimated at $ 1.4 billion.

A company worth $ 2 billion can be made out of YATEC, which has huge gas reserves, an acquaintance of Magomedov told RBC. You can grow an asset worth $ 5 billion or more with the right investment program, another interlocutor shared. $ 2 billion looks like a realistic estimate for the construction of an export-oriented gas chemical plant, said Andrei Polishchuk, an analyst at Raiffeisenbank. An estimate of $ 5 billion or more will require a proportional increase in investment, the expert said.