Alfa Bank and A1, the key investment arm of consortium Alfa-Group, have reached an agreement on joint investing activities for $200 mln. As the lending institution said in a press release, total capital is planned to be spent on stakes in Russian assets that hold growth potential.
The investment portfolio is expected to include 10-15 projects. The total value of targeted assets may exceed declared capital using borrowed funds and investment from third parties.
"Consolidating the expertise and possibilities held by Alfa Bank and A1 will make it possible to forge a sought-after and efficient investment mechanism. It is especially important that the money will be invested in Russia," Alfa Bank CEO Alexey Marey pointed out.
The cooperation strategy implies adding value to the shareholders of the entities that hold competitive advantages and potential to expand operations in the current macroeconomic environment, the press release emphasized. A broad array of sectors is considered for joint projects, with priority given to agribusiness, metal-making and mining, chemical and petrochemical, timber, pharmaceuticals and FMCG. Investment criteria optionally imply a majority stake, but suggest the presence of at least blocking shareholder rights in joint investment, investors specify.
The partners expect that complementary competence of Alfa Bank and A1 will make it possible to deliver the highest returns on joint investment. Alfa Bank would be able to make a considerable contribution in terms of access to the funding of portfolio companies and unique sectorial expertise amassed during more than 25 years of operation in the Russian market, the press release says. In turn, "A1 has succeeded in raising the capitalization of portfolio companies, attaining financial stability and transparency of entities, and also in improving the quality of their corporate governance", A1 President Alexander Vinokurov said.
