Timchenko sells 13% of IGSS to Industrial Investors for $40.6 mln
MOSCOW. Nov 15 (Interfax) - Volga Group, the management company for the assets of billionaire Gennady Timchenko, has sold a 13% stake in IG Seismic Services (IGSS) to the Industrial Investors Group, which is controlled by Sergei Generalov.
IGSS said in a press release that Nyala Investment Limited, representing Volga Group, has sold its 13% stake. The buyer was Melva Enterprises Limited, which represents the interests of Generalov, who is chairman of the IGSS board of directors.
The deal will be closed in Cyprus on Thursday. The deal is worth more than $40.6 million, IGSS said.
The price of the deal corresponds to the market value of the stake. IGSS GDR, representing two shares each, closed at $30 on the London Stock Exchange on November 13, giving the company a market capitalization of $312.5 million and valuing 13% at $40.6 million.
IGSS was formed in December 2011 with the assets of Integra, Schlumberger and Geotech Holding. The company's shareholders include Nikolai Levitsky with 26.8% and Schlumberger with 12%. Institutional investors hold 5% and the free float is more than 43%. Volga Group is no longer a shareholder.
"Volga Group played a significant role in IGSS' development from the moment of our investment in Geotech Holding in 2010 to the formation of one of the largest players on the seismics market on its basis. We are happy with the results of the deal, which was profitable for the group," Volga Group told Interfax.
