KOMMERSANT. Russian railroad monopoly Russian Railways acquired 35% of Millennium Bank shares through affiliated entities. The transaction price totaled Rub 300 mln, the railroad giant said in its FY12 IFRS financial statement. As the monopoly’s representatives specified, BetElTrans, Railroad Trade Company and Russian Railways Trade House each picked up 11.69% stakes in the bank. The railroad monopoly holds 100% stakes in the first two companies, and a 50% + 1 share interest in the trade house.
The bank’s other shareholders are Bamtonnelstroy (35.08%), Statos (16.9%) and Russian Railways — Station Development (12.8%). All three stockholders sold their stakes to Russian Railways’ entities, and most shares were divested by Bamtonnelstroy (a contractor of Russian Railways), the interest of which equaled 54.05% prior to the transaction. Bamtonnelstroy is part of construction company Most, owned by Vladimir Kostylev and Evgeny Sur (Forbes estimates net worth of each businessman at $600 mln). Gennady Timchenko picked up a blocking interest in construction firm Most last year. Also, Statos is in turn owned by several individuals, including Millennium Bank management board chairman Mikhail Baidakov and his spouse. Mikhail Baidakov is an advisor to Russian Railways CEO Vladimir Yakunin. The railroad monopoly controls just 25% of Russian Railways — Station Development, with 75% being in the hands of the company’s general director Sergei Pak.
The bank has heavily dealt with Russian Railways’ entities for several years already. The bank provides the monopoly with the services to place available funds on deposit accounts in the amount of up to Rub 50 bln. And in 2011 the lender entered into an agreement with Russian Railways — Station Development to put into operation ATMs and payment terminals at around 330 railway stations. Such exclusive terms are enjoyed only by Transcreditbank, which Russian Railways sold to VTB Bank (the deal was wrapped up in 2012).
This January Millennium Bank announced the establishment of a 50/50 JV with Italy’s EDF Fenice that will engage in “executing Russian Railways’ strategy towards the formation of its own generation capacities”. At the Petersburg International Economic Forum the lending institution announced a consortium with the Milan Metro that will design transit units at the Moscow Ring Railroad. Russian Railways told Kommersant that the bank is also reviewed as “one of the entities to draw investors” in a project to build hi-speed railroads.
