April 19, 2018 Issue No. 2018/14

Size: px

Start display at page:

Download "April 19, 2018 Issue No. 2018/14"

Samantha Taylor
5 years ago
Views:

1 SECURIITIIES MARKET NEWSLETTER weekly Presented by: VTB Bank, Custody April 19, 2018 Issue No. 2018/14 Please be advised that May 1 st and May 9 th are public holidays ( Labor Day and Victory Day ) in Russia. Please note that April 28 th is a short working day and April 30 th and May 2 nd are official days off. Market News Euroclear to monitor operations with securities of blacklisted Russian companies On April 12, 2018 it was reported that international depository Euroclear would monitor transactions with the securities of Russian companies hit by the new U.S. sanctions. Euroclear suspended automatic processing of orders on such securities, they will be handled manually after necessary checks are made. On April 10, head of Russia s National Settlement Depository Eddie Astanin said that Euroclear and Clearstream would be certainly settling transactions with the securities of RUSAL and En+ until May 7 but with additional control. On April 6, the U.S. imposed sanctions against a total of 38 Russian tycoons, officials and companies, including En+ Group and RUSAL. Deals to withdraw from the assets were allowed until May 7. Company News Delo Group acquires 30.75% stake in Global Ports from founders On April 12, 2018 it was reported that Delo Group of Russian businessman Sergei Shishkaryov acquired a 30.75% stake in container terminal operator Global Ports from founders Nikita Mishin, Konstantin Nikolayev and Andrei Filatov, who control Transportation Investments Holding Limited (TIHL). Global Ports also said that in connection with the transaction, Delo Group acceded to the shareholder agreement with APM Terminals B.V. and that TIHL had been released from its obligations under such agreement. En+ Group confirms Glencore s refusal to convert RUSAL GDRs On April 12, 2018 it was announced that En+ Group and Swiss trader Glencore were postponing conversion of Glencore s stake in Russian aluminum giant UC RUSAL for global depositary receipts (GDR) of En+ Group. Glencore announced freeze of the transaction on April 10. After consultations with Glencore International AG, the sides decided that they would not swap the securities due to inclusion of RUSAL and En+ Group in the Specially Designated Nationals And Blocked Persons List (SDN) by the U.S. Department of Treasury. On April 6, the U.S. imposed sanctions against 38 Russian tycoons, officials and companies, including tycoon Oleg Deripaska and his companies En+ Group and RUSAL. En+ expected to close the deal in April and wanted to raise the stake in RUSAL to 56.88% from 48.13%. Deripaska declines to become member of Norilsk Nickel board On April 12, 2018 it was declared that Russian tycoon Oleg Deripaska, President and core beneficiary of troubled aluminum giant UC RUSAL, declined to be nominated to the board of directors of another metals giant Norilsk Nickel. 1

2 Summa Group to continue work on all projects On April 13, 2018 it was stated that Russian multi-industry holding Summa Group would optimize its organizational structure, but would continue working in full on all its current projects. The board of directors of the company also affirmed Leyla Mammedzade as the company s CEO. On March 31, the Tverskoi District Court of Moscow sanctioned arrest of Summa Group s co-owners Ziyavudin and Magomed Magomedov on accusations of large-scale embezzlement. En+ Group says board of directors member Orcel resigns On April 13, 2018 it was reported that Ricardo Orcel, a member of the board of directors of Russian multiindustry holding En+ Group, resigned on April 11. On April 6, the U.S. imposed sanctions against a total of 38 Russian tycoons, officials and companies, including tycoon Oleg Deripaska and his companies En+ Group and aluminum giant UC RUSAL. En+ Group s independent director Dominique Fraisse quit the board of directors on April 6, and non-executive director Zhao Guangming resigned on Monday. RUSAL abandons plan to ask to compete for Norilsk Nickel stake On April 13, 2018 it was declared that Russian aluminum producer RUSAL abandoned an idea to ask the shareholders for a mandate to compete for a stake in Norilsk Nickel with Interros due to the new U.S. sanctions. According to the statement, RUSAL will monitor the situation and can return to the move if sees it necessary. On April 6, the U.S. imposed sanctions against 38 Russian tycoons, officials and companies, including RUSAL. A long-standing shareholder conflict between Norilsk Nickel s shareholders Interros of Vladimir Potanin and RUSAL of Oleg Deripaska was resolved in 2012 with the intermediation of Roman Abramovich by signing an agreement with a five-year share lockup period, but resumed in mid-february. Interros and RUSAL failed to coordinate parameters of a new shareholder agreement. Potanin offered Abramovich to buy about 4% in Norilsk Nickel, Abramovich offered Deripaska and Potanin to participate in the deal proportionately to their stakes. RUSAL accepted the offer but asked the High Court of London to prohibit the deal. Interros closed a deal to acquire 2.1% in March. Polyus to buy USD mln of USD 50 mln 2021 convertible bonds On April 16, 2018 it was stated that Polyus Finance Plc., an affiliate of Russian gold producer Polyus, closed a bidding book for USD 50 mln worth of 2021 bonds convertible into global depositary receipts (GDRs). The final purchase price is 86.7%, which translates into a purchase amount of USD mln. The company placed USD 250 mln of the bonds in January. The coupon was set at 1% annually. The conversion price stood at USD , which implied a 30% premium to the weighted average market price of USD as of January 19, when bids were collected. OTCPharm holders to consider delisting from Moscow Exchange On April 17, 2018 shareholders of pharmaceutical company OTCPharm will consider delisting from the Moscow Exchange. The register for the shareholders meeting, which will be held by correspondence, will be closed on April 27. In March, the Moscow Exchange said it suspended trading in the company s common shares due to a buyback request. Novatek buys back 120,000 common shares on April 17, 2018 On April 18, 2018 it was reported that independent Russian gas producer Novatek bought back 120,000 common shares, including shares in the form of global depositary receipts (GDRs), on the open market on April 17. Novatek resumed buying back its shares after an 8-month break on April 9, the Russian stock market s black Monday following new U.S. sanctions against local companies and individuals. In the period from April 9 till April 16, the company bought back about mln common shares. In May 2017, the board of directors extended a USD 600 million buyback program until June 7, Under the program, the company will buy its shares and GDRs via its unit Novatek Equity (Cyprus) Limited. Rosseti says Tuvaenergo may offer RUB 1.1 bln additional shares On April 18, 2018 the board of directors of power grid operator Rosseti authorized its representatives in the board of directors of Siberia Interregional Distribution Grid Company (Siberia IDGC) to approve issuing bln additional common shares of Tuvaenergo. The shares may be offered privately to Siberia IDGC and Rosseti. The offering price will be set by Tuvaenergo s board. Bank Saint Petersburg to decide on buyback of shares soon On April 19, 2018 Konstantin Balandin, CEO of Bank Saint Petersburg, the biggest bank in Russia s northwest, stated that the bank would decide on a buyback of shares in the next few weeks. The bank held a buyback in late 2015 and bought back around 3% of shares for around RUB 600 mln at that time. This time it will be larger in scale and sum. 2

3 PIK Group delays offer of RUB 14 bln bonds indefinitely On April 19, 2018 it was announced that Russian real estate developer PIK Group again delayed an offer of RUB 14 bln 10-year exchange bonds indefinitely. Initially, the company planned to offer the bonds on April 17, but delayed them to April 19. The technical placement was scheduled for April 20. The issue encompasses an early redemption on request of bondholders or on a decision of the issuer. RUSAL s shares rise by more than 7% on China talks report On April 19, 2018 it was reported that the share price of Russian aluminum producer RUSAL grew 7.5% to RUB at 10:23 a.m. Moscow time on the Moscow Exchange on April 18. RUSAL closed 26.76% higher in Hong Kong at USD 1.8 at the closing of the trading session on the Hong Kong Stock Exchange. Earlier on April 18, Bloomberg reported that RUSAL s executives met with Chinese companies and traders to discuss purchases of alumina and sales of aluminum in China. Dividends/coupons Gazprom s management suggests 2017 dividends at RUB 8.04 per share On April 12, 2018 the management of Russian gas giant Gazprom suggested the board of directors to keep the company s dividend payment flat on the year at RUB 8.04 per share on 2017 results. The major owners of Gazprom are the Federal State Property Management Agency with a 38.37% stake and state energy holding Rosneftegaz with 10.97%. Quadra to decide on 2017 dividends after IFRS report release On April 13, 2018 Svetlana Nikonova, Deputy CEO for Economy at Russia s Quadra Power Generation, said that the company would decide on issues concerning dividends for 2017 after releasing a financial report under International Financial Reporting Standards (IFRS). The company s net profit amounted to RUB 602 mln in 2017 against RUB 1.5 bln net loss in 2016, as calculated under Russian Accounting Standards (RAS). Quadra plans to receive a RAS net profit in Transneft hopes not to borrow to pay dividends in 2018 On April 13, 2018 Maxim Grishanin, First Vice President at Russian oil pipeline monopoly Transneft, stated that the company hoped that it would not need to borrow to pay dividends in The amount of dividends will not exceed the sum paid in Grishanin said earlier that Transneft paid RUB 58 bln in dividends in 2017 and planned the same amount for Grishanin also said that Transneft retained the forecast for borrowing in 2018 at RUB bln and for debt repayment at USD 2 bln. VTB Bank board recommends RUB 44.8 bln on common shares in 2017 dividends On April 16, 2018 the supervisory board of Russia s second-biggest lender VTB Bank recommended tripling 2017 dividends on common shares on the year to RUB bln, or kopecks per share. Dividends on preferred shares of the first type may amount to kopecks per share, or a total of RUB bln, and on preferred shares of the second type to kopecks per share, or RUB bln. The bank may pay a total of RUB bln, or around 61% of its 2017 net profit under International Financial Reporting Standards (IFRS), in dividends for In 2017, VTB Bank s net profit more than doubled on the year to RUB bln. Raiffeisenbank may pay over RUB 4 bln in January March 2018 dividends On April 16, 2018 the supervisory board of Raiffeisenbank, Russian unit of Raiffeisen Bank International (RBI), decided to allocate RUB bln, or RUB 113,900 per share to dividends for January March. The dividends will be paid until April 28. The bank posted a net profit of RUB 9.47 bln in January March, as calculated under Russian Accounting Standards (RAS). Dividends will account for 44% of the net profit, and the rest will be kept undistributed. CEO says FGC UES still plans to pay no less in 2017 dividends than in 2016 On April 16, 2018 Andrei Murov, CEO of Russia s Federal Grid Company of Unified Energy Systems (FGC UES), said that the company still plans to pay no less in dividends for 2017 than for The company s net profit rose 6.3% to RUB 72.7 bln in 2017, as calculated under International Financial Reporting Standards (IFRS). Severstal board recommends RUB per share in January March 2018 dividends On April 16, 2018 the board of directors of Russian steelmaker Severstal recommended paying RUB per share, or RUB 32.1 bln, in dividends for January March. The shareholders will consider the recommendation at an annual general meeting on June 8. The register for the meeting will be closed on 3

4 June 19. The board also recommended to set the record date for June 19. The company paid RUB per share, or a total of RUB bln, in dividends for January March VSMPO-Avisma may pay RUB per share in dividends for 2017 On April 16, 2018 the board of directors of Russian titanium giant VSMPO-Avisma recommended paying RUB per share in final dividends for The record date for the dividends is June 6. The shareholders are to discuss the recommendation at an annual general meeting scheduled for May 22. Previously, the company paid RUB per share in dividends for January June For 2016, the company paid the dividends of RUB 1,300 per share, or a total of RUB 15 bln. State industrial corporation Rostec holds 25% plus one share in VSMPO-Avisma. Expotrade, controlled by the management of VSMPO- Avisma, has 65.27%. Deputy Minister says Russian Railways wants dividends only on preferred shares till 2025 On April 16, 2018 Alan Lushnikov, Deputy Transport Minister, said that Russian Railways wants to spend its net profit on infrastructure until 2025 and dividends only on preferred shares. State-owned Russian Railways paid RUB bln in dividends for 2016 on common and preferred shares. In 2017, the company s net profit more than doubled to RUB 17.5 bln, as calculated under Russian Accounting Standards (RAS). Sovcomflot board recommends RUB bln in 2017 dividends On April 16, 2018 the board of directors of shipping company Sovcomflot, wholly owned by the state, preliminarily recommended paying RUB bln, or 50% of its Russian Accounting Standards (RAS) net profit, in 2017 dividends. In March, the company said it had reserves to pay dividends despite a loss for 2017 it had as calculated under International Financial Reporting Standards (IFRS). In 2016, Sovcomflot paid in dividends RUB bln, or 50% of its IFRS net profit, and RUB mln of undistributed profit of previous years. Detsky Mir board recommends RUB bln in 2017 dividends On April 16, 2018 the board of directors of children goods retailer Detsky Mir recommended paying RUB 3.88 per share, or a total of RUB bln, in dividends for The shareholder register for dividends is to be closed on May 29. In 2017, the company s net profit fell 11.1% to RUB bln, as calculated under Russian Accounting Standards (RAS). Multi-industry holding Sistema owns 52.1% in the retailer and the Russia-China Investment Fund (RCIF) holds 14%. Free float accounts for 33.9%. CEO says Sberbank s board recommends RUB 12 per share in 2017 dividends On April 17, 2018 the supervisory board of Russia s biggest lender Sberbank recommended paying RUB 12 per share, or 36.2% of the net profit under International Financial Reporting Standards (IFRS), in dividends for Common shares rose 7.6% and preferred shares added 5.63% as of 2:17 p.m., Moscow time, on the Moscow Exchange on the news. Gref said that the total dividend payout would amount to RUB 271 bln, a 100% rise as compared with The central bank owns a 50% plus one share stake in Sberbank, non- Russian resident companies 45.6%, resident companies 1.5%, private investors 2.9%. Rusagro to pay RUB bln in dividends for 2017 On April 18, 2018 shareholders of Russian agricultural holding Rusagro approved payment of RUB bln in final dividends for Taking into account the January June 2017 dividends of RUB bln, the company s total dividend payout for 2017 will reach RUB bln, which accounts for 73% of the net profit for the year calculated under International Financial Reporting Standards (IFRS). The company will pay the final dividends in U.S. dollars calculated on the ruble s exchange rate as of March 16. Previously, the company paid a total of RUB bln for 2016, including RUB bln in dividends for January June 2016 and RUB bln in final dividends for the year. The family of Russian businessman Vadim Moshkovich owns around 70.7% in Rusagro, CEO Maxim Basov holds about 7%, 1.6% is treasury shares and free-float accounts for 20.7%. Eurobonds / DRs TCS Group buys back 680,000 GDRs under incentive program On April 17, 2018 it was announced that TCS Group, which includes Tinkoff Bank and Tinkoff Insurance, bought back 680,000 global depositary receipts (GDRs) under a long-term top management incentive program. On April 13, the company bought 380,000 GDRs at an average price of USD apiece. On April 16, it acquired additional 100,000 GDRs at USD apiece and agreed to buy 200,000 GDRs at USD apiece. 4

5 Please be advised that the information presented in this newsletter is based on the following sources: National Settlement Depository (NSD); Clearstream Banking; Euroclear Bank; PRIME-TASS information agency; Kommersant, "Rossiyskaya Gazeta, Izvestiya, "Vedomosti, The Moscow Times newspapers, and others. For more information kindly contact: Anna Enfiandzhiants Evgenia Sakr Julia Dombrovskaya T +7 (495) T +7 (495) T +7 (495) F +7 (495) F +7 (495) F +7 (495) E anna.enfiandzhiants@msk.vtb.ru E evgenia.sakr@msk.vtb.ru E julia.dombrovskaya@msk.vtb.ru This document has been prepared exclusively for internal use of VTB Bank (PJSC) customers. The information should not be further distributed or duplicated in whole or in part by any means without the prior written consent of VTB Bank (PJSC). The information contained herein has been prepared on the basis of information which is either publicly available or obtained from a source which VTB Bank (PJSC) believes to be reliable at the time of publication. Information provided herein may be a summary or translation. The content of the material contained herein is subject to change without notice, and such changes could affect its validity. VTB Bank (PJSC) is not obligated to update the material in light of future events. Furthermore, VTB Bank (PJSC) does not warrant, expressly or implicitly, its veracity, accuracy or completeness. VTB Bank (PJSC) and its affiliates accept no liability whatsoever for any use of this communication or any action taken based on or arising from the material contained herein. Additional information may be available upon request. The material in this communication is for information purposes only. Therefore, this communication should not be interpreted as investment, tax or legal advice by VTB Bank (PJSC) or any of its officers, directors, employees or agents and customers should consult with appropriate professional advisers for these specific matters. Nothing expressed or implied herein is intended to create any obligation of VTB Bank (PJSC) and/or impose any liability on VTB Bank (PJSC) and/or create legal relations between VTB Bank (PJSC) and VTB Bank (PJSC) customers. 5

April 13, 2017 Issue No. 2017/13

SECURIITIIES MARKET NEWSLETTER weekly Presented by: VTB Bank, Custody April 13, 2017 Issue No. 2017/13 Company News PhosAgro s board of directors approves large financing deal On April 6, 2017 the board