Transnefteservice S chief consolidating 100% of company shares
MOSCOW. Feb 22 (Interfax) - The general director of Transnefteservice S, Dmitry Arzhanov, is consolidating 100% of company shares.
Companies close to Arzhanov are buying a 50% stake from Alexander Rubanov, several sources in the sector told Interfax.
The deal is worth $225 million, based on the valuation of the entire company at $450 million. The deal is expected to close before year-end.
Interfax was unable to obtain comment from Transnefteservice S.
Arzhanov has raised about $175 million so far, using borrowing raised by electricity retail companies he owns (about 6 billion rubles). One of the sources told Interfax that the loans raised by the electricity retailers have been repaid with a loan raised by Transnefteservice S.
Transnefteservice S is a private electricity retailer set up to supply electricity to Transneft facilities. It was initially owned 50-50 by Rubanov and Mikhail Abyzov's E4 Group.
In 2009 Abyzov sold his stake in the company, to structures close to company management, it was reported at the time. Later it was disclosed that Arzhanov had bought the 50% stake. Arzhanov arrived at the company in October 2009. He had previously been the head of Nizhny Novgorod Retail Company . Arzhanov was named the head of Transnefteservice S in February 2010.
The company owns stakes of at least 75% in six ERCs, including five Tier 1 guaranteed suppliers: Voronezh Electricity Retail Company , Nizhny Novgorod Retail Company, Yaroslavl Retail Company , Marienergosbyt (RTS; MISB) and Karelia Electricity Retail Company. The sixth ERC is a Tier 2 guaranteed supplier in Tula.
Transnefteservice S is currently in talks on acquisition of a number of ERCs, including those in the first and second tiers, one of the sources said without specifying which companies or where they are located.
Transnefteservice S no longer supplies Transneft facilities. That business is handled by Rusenergoresource, which is owned by Grigory Berezkin's ESN group.
RTS$#&: MISB, NNSB, TRNF, VRSB, YRSB
