SFI transfers stakes in Russneft, M.Video from Cyprus subsidiary to itself

MOSCOW. July 22 (Interfax) - Stakes in Russian oil company Russneft and consumer electronics retailer M.Video that were held by a Cyprus-based subsidiary of investment group SFI have been transferred to Russian jurisdiction.

PJSC SFI directly held 1.57% of votes in Russneft until July 20 and indirectly owned another 9.6% through Weridge Investments Ltd, giving it control of 11.18% of the oil company. But on July 20 Weridge's stake was transferred to PJSC SFI, so it now owns 11.18% of Rusneft directly, SFI said in a press release.

The price of the sale of the 28,257,309 common shares in Russneft was 4.769 billion rubles or about 168.80 rubles per share, more than twice the current market price.

SFI is paying its subsidiary 9.481 billion rubles for 18,648,343 common shares (10.37% of equity) in M.Video, or 508.40 rubles per share, which is 170% more than the market price.

The deadline for fulfilling obligations on the transactions is December 31.

PJSC SFI, which until last September was called Safmar Financial Investments, was as of December 31 controlled by the son of Russneft founder and head Mikhail Gutseriev, Said Gutseriev, who indirectly owned 30.365% of shares but had an effective controlling stake of 71.1% taking into account quasi-treasury stock.

Said Gutseriev was put on the UK sanctions list in June 2022.

Said Gutseriev also controls 60.4% of shares in M.Video, including 50% through Ericaria Holdings Limited and 10.4% previously through Weridge but now through SFI. He owns another 0.046% of shares directly. Germany's Media-Saturn-Holding GmbH, from which M.Video acquired the Russian Media Markt stores in 2018, owns 15% of the Russian retailer. The free float is 23.8%.

At the end of April, M.Video announced that Gutseriev had agreed to sell his shares in the retailer to Russian entrepreneurs in a deal that is supposed to be closed this year. The company said at the end of June that the deal was entering the final stage.

The Gutseriev family owned about 33% of Russneft as of the end of 2021; commodities trader Glencore controlled 23.46%; the Central Bank's Trust Bank owned 19.23% and state bank VTB held 8.48%. the free float amounted to 22.56% of common shares, or about 17% of equity.