Viktor Vekselberg increased the authorized capital of Renova more than a million times to 35.78 billion rubles. This may be due to relocation to the Russian jurisdiction or tax optimization, experts say
Renova LLC (100% of the company belongs to Viktor Vekselberg) increased its authorized capital from 28,000 to 35.781 billion rubles, follows from the data of SPARK-Interfax. The change was registered in the system on March 20, 2019. The company was registered in November 2015 with a capital of 10,000 rubles. (increased to 28,000 rubles in 2016). The representative of "Renova" did not respond to the requests of "Vedomosti". According to experts, the increase in share capital may be due to the re-registration of the parent company into Russian jurisdiction, an attempt to minimize the effects of US sanctions, the execution of construction projects for the parent company, tax optimization or even preparation for the implementation of a large project.
One of the options: Renova transfers the parent company to the Russian offshore, which will include the main assets, says investment banker, with whom Vedomosti talked. “Perhaps US sanctions are forcing Vekselberg to withdraw assets to Russia,” he admits. The director of the group of corporate ratings of the ACRA Maxim Khudalov agrees with this version. A total of three companies are registered in the Russian offshore so far, the Ministry of Economic Development reported on March 15. "Renova" or companies associated with it were not on the list. Nine more applications for re-registration in the CAP are under consideration, the ministry said. But the new residents in the Russian offshore has not yet appeared, said a federal official in a conversation with Vedomosti.
A scenario is possible in which the increase in share capital is caused by a new law on construction, the investment banker continues. Previously, all projects of the development company Kortros Holding were drawn up as separate legal entities. Now they can be issued to the parent company, he suggests. Net profit of Kortros Holding in 2017 amounted to 357.7 million rubles. (data "SPARK-Interfax").
“The reasons for recapitalization can be very different: from the replenishment of working capital of the holding company and its subsidiaries to the preparation for the alienation of the asset or its part,” notes Alexander Pakhomov, managing partner of UK Law and Business. It may be necessary for the owner to raise the value of the asset, pay off the debt to creditors or fulfill the requirements of creditors during the restructuring. Conversion of loans into authorized capital is not excluded if the company was financed from borrowed funds of the founder, reminds the expert. The interlocutor of "Vedomosti" in a large state-owned bank says that the increase in the authorized capital of "Renova" may be due to tax optimization. His colleague from another state bank notes that the company could be financed through shareholder loans, and this is not welcome tax. Therefore, a shareholder could easily replace loans to the company's capital.
In addition to continuing the process of repatriating assets, an increase in share capital may be related to Renova’s intentions to enter a large project, says Dmitry Gorbunov, a partner of the law firm Rustam Kurmaev and Partners. “For example, on the construction of airports. The structures of Renova have repeatedly expressed interest in this project, ”the lawyer said.
Since July 6, 2018 Renova LLC has owned 99.99% in Renova Aktiv LLC and Renova Holding Rus LLC. 0.01% in both structures are owned by Evgeny Olkhovik’s Klok LLC (a company controlled by one person cannot be the sole founder of another company). Through two structures, Russian businessman assets are controlled. The first belong to: “Baikal Holding” (producer of drinking water), gold mining “Gold of Kamchatka”, “Akado Holding” (Internet provider) and “Orgsintez” (manufacturer of chemical products). The second: Airport-Holding LLC (Rostov-on-Don Airport), bioscience company Biosten and Kortros Holding.