First Deputy Prime Minister Igor Shuvalov instructed to consider the issue of privatizing a controlling stake in the United Grain Company (OZK) in favor of Zyamudin Magomedov's Sum. It already owns 50% minus one share of the OCK, to buy the rest of the share, according to experts, it will take up to 14 billion rubles. Part of the funds can be provided by the Russian Direct Investment Fund (RFPI) in exchange for 10% in the OZK.
The topic of privatization of the state package of the OC was discussed on May 18 at a meeting with First Deputy Prime Minister Igor Shuvalov. As a result of the meeting between the Ministry of Economy, the Ministry of Agriculture and the Ministry of Finance with the participation of the Suma group (owns 50% minus 1 share of the OZK), RFPI is instructed to determine the price of the state package of the OZK and the premium, according to the minutes of the meeting (copy is also available from Kommersant, eleven). The parties should also study the possibility of selling the state package of the OZK to the consortium "Summa" and RFPI. The share of the fund in the transaction may be 10%, indicated in the protocol. A report on this issue should be submitted to the government by June 20, 2017. The representative of Mr. Shuvalov confirmed this assignment, refusing to comment further.
OZK (established in 2009) acts as the state agent for conducting commodity and purchasing interventions in the grain market. Initially, the only shareholder of the OZK was the state represented by the Federal Property Management Agency, in 2012, as a result of the additional issue, its share was reduced to 50% plus 1 share. The rest of the package for 5.95 billion rubles. Acquired LLC Investor - "daughter" of "Sumy". Now the OC manages more than 20 grain elevators and processing plants. The largest asset is PJSC Novorossiysk Bakery Plant (NKHP, OZK owns 51% of shares in it) with a throughput capacity of 3.5 million tonnes of grain per year. The proceeds of the OC in 2016 amounted to 12 billion rubles, net profit - 2.24 billion rubles.
Summa said that they are interested in privatizing the state share holding of the OZK: "We also support the company's development strategy and a large-scale investment program approved by the board of directors last year." The volume of financing of the long-term program for the development of the OC until 2020 is estimated at 30 billion rubles., Said in November 2016 the former general director of the company Marat Shaidayev. These funds are planned to be used for the modernization of elevators, the development of the NKCP, the creation of a railway operator and the construction of a Far Eastern grain terminal with a capacity of 3 million tons of grain a year.
Based on the reports of the OCM, its business can be estimated at 22-28 billion rubles., Says Andrei Sizov, director of Sovecon. Konstantin Yuminov from Raiffeisenbank recalls that "Sum" initially wanted to consolidate the OZK, but the state was not in a hurry with privatization because of the status of the company as the state agent for grain interventions. The Ministry of Agriculture, the Ministry of Economy and the OC have been instructed to submit proposals on transferring these functions to another company by June 5, Igor Shuvalov said in the minutes of the meeting.
According to a source close to the OC, "KP" participation RFPI in the privatization of the company may be associated with limited money resources "Summa." Part of the group's assets do have serious financial difficulties, Mr. Yuminov confirms. So, the transport group Fesco in 2016 defaulted on eurobonds. Involvement of the RFPI for privatization will cause less irritation among the creditors of the Suma structures, the analyst adds.
By increasing the share in the OZK, Summa will also strengthen its control over NCCP. Now, according to its accounts, the OCI owns 50.99% of NCCP, 18.49% is owned by Cypriot Ivianto Services Ltd Mr. Magomedov, 22.2% owned by VTB Bank. If the sale of the remaining state package of OZK Summe takes place, the group will receive control over the two largest deep-sea terminals in the country - NCCP and the Novorossiysk grain terminal (part of the Novorossiysk Commercial Sea Port where Summe and Transneft own 50.1% of the Parity basis), notes Mr. Sizov.
Open privatization of the OC could attract foreign strategic investors, the head of Sovecon believes. "Most large multinational trading companies would be interested in the asset with interest, for example, the agro-industrial giant ADM is still poorly represented in Russia," he argues. The main interest for possible participants in the privatization of the OC is precisely the NCCP, while the status of the elevator network raises questions, says one of the interlocutors of Kommersant on the grain market.
The Ministry of Agriculture, the Ministry of Finance and Federal Property Management Agency did not respond to a request from Kommersant. The Ministry of Economics confirmed that the issue on the OCM is in the process of elaboration. The RFPI declined to comment. To receive comments OZK it was not possible.