A1 plans to invest in undervalued Russian assets at least $ 1 billion by 2018A1 plans to invest in undervalued Russian assets at least $ 1 billion by 2018.
The main interest for the Company is deals in import-substituting industries and developing industries at an average cost of $ 20-50 million. The purpose of A1 is to achieve an investment income at a level not less than 25%.
Moscow, July 20, 2016. A1 Investment Company, Alfa Group unit, plans to analyze assets in various sectors of the Russian economy in 2016-2017 and to invest in undervalued assets in the dynamic and key import-substituting industries at least $ 1 billion. According to Alexander Vinokurov, the A1 President, this amount includes joint investment program of A1 and Alfa-Bank with a share capital of $ 200 million announced in late May. At the moment A1 has 12 potential development projects. The average amount of the investment is expected to reach $ 50 million, the target interest of IRR to be not less than 25% per annum in USD. The greatest interest for investment is industrial agriculture, FMCG, metallurgy, mining industry, chemicals, petrochemical industry, forestry, transport, mechanic engineering, real estate, regional retail and assets with synergy with Alfa Group.
"In a difficult economic situation many Russian companies in industry and trade are undervalued, but have good potential for growth with effective corporate management. We are interested in assets with potential to propel to the top of industries and keep the leaders status for several years"- said Alexander Vinokurov. "There are a number of players at the investment market, but it is the combination of A1 core competencies, such as investments, "special situations" settlement and work with distressed assets, that makes our expertise unique."
The company’s business is subdivided into 4 main areas: investments in promising companies with a view to create industry champions; current portfolio management to increase capitalization and market value of assets; projects with the use of A1 competencies in "special situations" settlement; work with distressed assets of banks for their financial recovery and creation of shareholder value. An important activity of the company is assistance to shareholders of various Russian assets in "special situations" settlement: shareholder conflict; deprivation of the financial situation of a company/default; output of foreign players from assets at distress prices; inheritance. A1 provides shareholders with a full financial and legal protection against unfriendly actions. A1 has an experience of cooperation with banks, whereby banks transfer the debt into company's management. Currently, A1 manages a $ 850 million debt. Throughout history of such cooperation with banks A1 sold debt assets worth $ 1.5 billion.
A1 is one of the leading players on the investment market in Russia and the CIS making equity investments in various industries, pursuing the interests of its shareholders, clients and partners. A1 focuses on investment projects of two types: special situations and growth strategies. Alfa-Bank (Russia), TNK, VimpelCom, Perekrestok and Rosvodokanal Group were originally A1 projects that later became strategic businesses for Alfa Group as well as core companies for the wider Russian economy. A1’s long-term interests are aimed at establishing strong and competitive businesses, producing modern and very high quality goods and services to satisfy Russia’s growing demand, and developing efficient organizational and management systems.