Skip to content

Cyprus Forums

Kuzbass for Sale: SDS Holding Sells Assets to Pay Off Debt

Posted on October 8, 2022November 3, 2022 By admin No Comments on Kuzbass for Sale: SDS Holding Sells Assets to Pay Off Debt
News of Cyprus

Debt of Kemerovo holding is approaching $1 billion. To pay off the banks, SDS gets rid of both secondary and core coal assets

“Siberian Business Union” (SBD) of Mikhail Fedyaev # 177 and Vladimir Gridin # 181 have closed the sale of 100% of LLC “Sibenergougol”, announced today the Kemerovo holding. The buyer was Moscow-based Sibugol, established in 2017. 99% of the company is owned by Swiss Sib Coal AG, 1% – Sibugol CEO Artem Kazakov. He is the beneficiary of the company, two sources in the coal market told Forbes. One of the interlocutors specifies that he is a native of Kemerovo who used to deal with trading operations. Prior to the deal with SDS, Kazakov had no coal mining assets.

The cost of the deal SDS did not disclose. A year ago, Sib Trading AG, a Swiss company affiliated with Kazakov, posted on the Russian Chamber of Commerce and Industry’s website its intention to purchase Sibenergougol for $300 million. According to a source familiar with the terms of the deal, the final price was $220-250 million.

Sibugol has a production capacity of 2.2 million tons of coal a year, according to a report of SDS. It was the only enterprise in the Union that produces anthracite. The enterprise exports 80% of its output. The main consumers are China, Vietnam, South Korea and Japan. The purpose of the deal is to reduce the credit burden of the industry unit “SDS-Ugol”, indicates Kemerovo holding. According to a source close to SDS, the debt of the holding is not less than 50 billion rubles. Another source says that the credit load of SDS is about $1 billion, the main creditors – Sberbank and Gazprombank.

In 2000s, SDS actively purchased coal assets of Kuzbass on loans. But since 2011 the prices of coal have repeatedly made multi-year lows and the banks raised the rates, recalls one of the coal miners. As a result, SDS was forced to start selling off assets.

In 2016, SDS sold chemical producer SDS Azot to billionaire Roman Trotsenko #63 and 74% of UGMK European Media Group of Iskander Makhmudov #31 and partners. Before that, SDS got rid of the Kemerovo airport, the Novokuznetsk Distillery and reduced its stake in the transport company Novotrans.

Before the deal with Sibugol UD included six coal enterprises with the total output of 30 million tons. Soon the number of coal assets of the holding may be reduced to four. Now the holding is in negotiations with Konstantin Strukov #55, owner of Yuzhuralzoloto, on sale of Kiselevsky surface mine. At the same time, a source acquainted with the plans of the holding says that SDS is not giving up its coal business. The long-term development program of Chernigovsky surface mine, the main coal asset of SDS, provides for an increase in production from 6.5 million tons of coal to 9 million tons, Fedyaev shared his plans last year.

Post navigation

❮ Previous Post: Crystal Integrity: Principles of the Creator of the World’s Largest Hedge Fund
Next Post: Developers of the most popular web server Nginx found a new company in Russia ❯

You may also like

News of Cyprus
“I was perceived as a technician”: Billionaire Milner talked about his work in Medvedev’s commission
October 28, 2022
News of Cyprus
Riverkeeper without shipyards: Roman Trotsenko got rid of the shipbuilding business
October 31, 2022
News of Cyprus
The Return of Igor Makarov. The once-influential founder of Itera has joined New Stream
October 18, 2022
News of Cyprus
Andrey Berezin’s Way Out for Cypriot
November 3, 2022

Leave a Reply Cancel reply

You must be logged in to post a comment.

Recent Posts

  • Andrey Berezin’s Way Out for Cypriot
  • Riverkeeper without shipyards: Roman Trotsenko got rid of the shipbuilding business
  • “I was perceived as a technician”: Billionaire Milner talked about his work in Medvedev’s commission
  • Not just the Rotenbergs: How Billionaires Make Money on Hockey
  • The alternative to the dollar: billionaire Roman Trotsenko on the benefits of bitcoins and the dispute with the head of the Central Bank

Categories

  • News of Cyprus
  • World news

Copyright © 2022 cyprus-forums.com

Theme: Oceanly News Dark by ScriptsTown