Eurokommerz Announces Sale of 4.2% Stake to Group of Investors
Eurokommerz Holding Limited (Eurokommerz) today announces the sale of a 4.2% stake in the company to a consortium led by Troika Capital Partners and including UBS Pactual, Eastgate Capital (member of NCB Group), Fleming Family & Partners, Troika Dialog as well as other institutional investors. The shares acquired by the group of investors will be owned by Eurokommerz Investments Vehicle Limited, a special purpose vehicle. The amount of the deal has not been made public.
The stake is being sold by Eurokommerz management, which will retain 45.6% of the company post-deal. The size of the stake belonging to Russia New Growth Fund, a private equity fund managed by Troika Capital Partners and holding 50.2% of Eurokommerz shares, remains unchanged.
Gregory Karpovsky, CEO of Eurokommerz, said: «We have successfully increased the number of relationships with companies that can add significant value to our development, especially in the risk management space and global financial expertise. The participation of such high-profile international investors in addition to a substantial management shareholding will enhance our competitive edge both in Russia and other emerging markets».
Giedrius Pukas, Managing Director of Troika Capital Partners, said: «Eurokommerz is a great asset for our group and we are delighted to bring in new blue-chip investors. The dynamic performance of this company as well as the rapid growth of the commercial finance market makes Eurokommerz an undisputed leader of the industry and a very attractive investment».
Simon Jamieson, Director of Fleming Family & Partners, said: «Eurokommerz has shown impressive results over the last 3 years and we are proud to be part of this success».
Eurokommerz (www.eurokommerz.com) is a commercial finance company and the largest factoring company in Russia (according to Russian rating agency Expert RA). Eurokommerz actively deals with approximately 24,000 companies across Russia, Ukraine and Kazakhstan. In 2007 (according to the audited consolidated IFRS financial statements as of and for the year ended 31 December 2007), factoring advances to clients amounted to RUB27.8 billion (USD1.1 billion), and the net profit for the same period was RUB1.6 billion (USD62 million). Eurokommerz is generally acknowledged as the leader in the Russian factoring business. According to Russian rating agency Expert RA, as of 1 January 2008, Eurokommerz`s market share by the value of accounts receivable was 30.3% and 41.5% by the number of clients. During 2007, the company financed (in total) receivables amounting to RUB120.9 billion (USD4.728 million).
In the first half of 2008, the company announced that net profit for the period had exceeded that for the full year of 2007.
Eurokommerz operates 55 regional sales offices in Russia, two subsidiaries in Kazakhstan and Ukraine, and has approximately 2,900 independent agents generating initial contacts with potential clients.
The company’s strategic objective is to become a leading commercial finance company in Russia, the CIS and across other emerging markets.
Eurokommerz’s shareholders include the company’s management and the Russia New Growth Fund (managed by Troika Capital Partners), whose investors include the European Bank for Reconstruction and Development (EBRD), Temasek Holdings, Goldman Sachs Asset Management, LGT Capital Partners, AXA Private Equity, Fleming Family & Partners among others. In October 2008 a consortium of investors, including UBS Pactual, Eastgate Capital (member of NCB Group), Fleming Family & Partners, Troika Dialog Group and other institutional investors became the shareholder of the company.
Troika Capital Partners, a division of Troika Dialog Group, operates private equity, venture and personal investments funds. Currently it has over $900 million in third-party assets under management. Troika Capital Partners invests in midcap companies in Russia and other countries of the CIS achieving favourable returns through long-term capital appreciation. It is consistently ranked among 3 best private equity firms in Russia according to Private Equity International.