Renova wants to withdraw from non-ferrous metal processing - paper
MOSCOW. May 23 (Interfax) - Viktor Vekselberg's Renova Group is planning to withdraw from the non-ferrous metal processing business; it has already put the Ekaterinburg Non-Ferrous Metals Processing Plant (ENFMPP) up for sale and intends to sell the Kamensk-Uralsky Non-Ferrous Metal Working Plant (KUZOCM) , the newspaper Kommersant reported on Thursday.
ENFMPP, which is valued at 4 billion rubles, is to be sold by A-Ventures, which currently manages the plant in the interests of Renova. The valuation process for KUZOCM is not finished yet.
According to Kommersant, Renova is promising its buyers a high internal rate of return (IRR) (over 30%) over the course of five to seven years. ENFMPP's management has interest in acquiring it.
ENFMPP, 100% of which Renova consolidated last October, provides the full range of services to refine, process and manufacture items from precious metals. It generated 1.9 billion rubles in net profit to Russian Accounting Standards (RAS) last year on the back of 4.46 billion rubles in revenue. ENFMPP launched a machine that produces bank bullions from platinum and palladium in 2012, and it also signed contracts with Kazakh and Indian companies for deliveries of precious metals for processing.
KUZOCM produces a wide spectrum of metal products from copper, nickel, zinc and alloys on their basis. Renova owns 89.45% of the plant's shares, and Cyprus-based Faendo Ltd. holds 10%. Last year KUZOCM posted 110.39 million rubles in net profit to RAS.
