Emporium LLC from Rinat Akhmetov’s SCM group has become the owner of 8.856607% of shares of PFTS, Ukraine’s largest stock exchange by trading volume (both in Kiev), on the eve of its announced plans to increase its authorized capital by 93.7%.
According to PFTS’ message in the NSCM disclosure system, the exchange received information about the new shareholder on February 2.
It is specified that Emporium is owned by Crossgold Limited, which, in turn, is owned by SCM Financial Overseas Limited, 100% owned by Akhmetov
There is no information about the seller of these shares yet.
As reported, PFTS earlier announced plans to consider at the extraordinary remote shareholders’ meeting on February 6 an increase in the authorized capital (AC) from UAH 32.01 million to UAH 62.01 million, or by 93.7%, through the placement of an additional 30 thousand shares with a par value of UAH 1 thousand through additional contributions without making a public offering.
Preliminarily, the list of persons among whom the shares of the additional issue will be placed is limited to the existing shareholders, however, the meeting may expand it by other investors intending to purchase the shares.
The largest shareholder of PFTS since the beginning of 2022 is Bohai Commodity Exchange (BOCE Co. Limited, Hong Kong) with 49.9% of shares. According to the SEC disclosure system, there were no other shareholders with a stake of more than 5% at the end of the third quarter of 2023.
At the same time, Prime Holding LLC in mid-October 2023 announced its intention to acquire 2,835 shares of the exchange, which is 8.8566% of its authorized capital.
PFTS did not publish financial statements after 9 months of 2021. According to information from the last annual shareholders’ meeting, the exchange reduced its net loss in 2022 compared to 2021 by 8.6% to UAH 3.641 mln.
The volume of trading on PFTS in 2023, according to its data, increased 3.6 times – up to 320.8 billion UAH, which amounted to 63% of the total trading volume of securities trading organizers in Ukraine, including in December – 28.6 billion UAH, or 66% of the total trading volume in the country.
In particular, the volume of government bonds traded on PFTS in 2023 increased 3 times to UAH 308.6 billion, corporate bonds of Ukrainian issuers – 20 times to UAH 1 billion (due to the recovery of primary placements), bonds of foreign countries – 5 times to UAH 0.7 billion, but transactions with shares were carried out for only UAH 19.4 million.
In December 2023, 39 participants of trades on PFTS concluded transactions with 48 issues of securities (Ukrainian government bonds – 33, Eurobonds of Ukraine – 1, corporate bonds of Ukrainian issuers – 7, bonds of a foreign state – 6, shares of Ukrainian issuers – 1), and in total in 2023 transactions were concluded by 49 participants with 114 issues of securities.
As of January 1, 2024, the number of PFTS members admitted to trading was 51: 30 banks and 21 financial companies. 353 issues of securities were admitted to trading on the exchange, of which 119 were in the Exchange Register.
At one time, LLC Emporium, established in 2007, was the owner of regional breweries OJSC PBC Krym, CJSC Dnipropetrovsk Brewery Dnipro, CJSC Firma Poltavpivo and OJSC Lugansk Brewery, but later SCM withdrew from this business. Emporium’s core business is commercial and management consulting.
Which market leaders increased their wealth in the first year of the full-scale invasion?
The revenues of the top 10 mining companies decreased by 14% in the first year of the full-scale war, according to the Opendatabot Index. In total, the market leaders earned UAH 295.15 billion over the year. These are companies engaged in the extraction of iron ore, natural gas, and coal. Six out of ten companies are owned by Rinat Akhmetov, and the leader in the sector is the state-owned Ukrgazvydobuvannya.
The leading companies in the extractive industry earned UAH 295.15 billion. This is 14% less than in 2021, when these businesses earned UAH 343.24 billion. Almost half of the total income of the leaders is accounted for by 3 natural gas companies.
The state-owned company Ukrgazvydobuvannya was the top performer, with revenue of UAH 86.38 billion. This is 29% of the total revenue of the top 10. At the same time, the company’s earnings fell by 4% compared to 2021.
It is worth noting that 6 of the top 10 companies belong to Rinat Akhmetov’s SCM Group. These companies accounted for 54% of the total revenue of the top 10 companies – UAH 159.57 billion.
Three of Akhmetov’s companies in the ranking increased their revenues and moved up in the ranking. These are:
– DTEK Pavlohradvuhillya increased its revenues by 1.8 times, taking the second position or UAH 44.2 billion,
– Pokrovskoye Mine Administration (UAH 38.47 billion) earned 1.8 times more, moving up to the 3rd place in the ranking,
– Naftogazvydobuvannya’s revenues increased by 2.3 times to UAH 35.99 billion. This is the __ position in the ranking
On the contrary, the revenue of 3 other SCM Group companies engaged in iron ore mining has significantly decreased compared to 2021:
– by almost 4 times at Northern GOK, to UAH 13.8 billion
– by more than 3 times, to UAH 12.7 billion, at Inguletsky GOK,
– by one third – at Central GOK (UAH 14.3 billion).
Ukrnaftoburinnya, previously owned by Ihor Kolomoisky, Vitaliy Khomutynnik and Pavlo Fuks, which was transferred to the ARMA by a court decision, was included in the ranking in 2022. This is despite the fact that in 2022 it received 25% less revenue compared to 2021 – UAH 9.7 billion.
The last 2 companies in the top are engaged in the extraction of iron ore and belong to the FERREXPO group (Kostiantyn Zhevago), which reduced their revenues last year. These are Poltava Mining, whose earnings decreased by 2 times, and Yeristovo Mining, whose revenue fell by 16%. Together, these two companies earned UAH 39.48 billion.
The Opendatabot index is an analytical tool for assessing the real situation and geography of Ukrainian business based on data from state registers, Opendatabot registers, financial statements of companies, information on ties with Russia, sanctions lists and other analytical tools of Opendatabot.
https://opendatabot.ua/analytics/index-mining_industry-2023
Opendatabot Index, Pavlohradvuhillya, Pokrovskoye Mine Administration, RINAT AKHMETOV, SCM GROUP, UKRGAZVYDOBUVANNYA
The investment company UMG Investments from SCM Group of Rinat Akhmetov has received a mandate to carry out two or three investments annually of up to $10 million each as a minority partner, SCM Head Oleh Popov has said.
“UMG Investments is ready for any partnerships – they have a mandate to enter projects as minority shareholders, and make investments up to $10 million … per transaction. They should bring 2-3 such transactions per year,” he said in an interview with Ekonomichna Pravda.
According to Popov, the main criteria are potential and innovativeness, but SCM has expectations for the return of these investments, but he did not specify the minimum profitability.
The head of the group recalled that in addition to new third-party projects, UMG Investments, headed by Andriy Gorokhov and Nadiya Kaznacheyeva, is also looking for additional projects with high profitability at all SCM industrial assets, including waste treatment.
As an example of implemented investments, Popov named the production of protein feed additives for animals Feednova with partners from the Effective Investments group of companies and Dutch-based Mada Participations B.V., the Ukrainian Mineral Fertilizers enterprise for the production of ammonium sulfate, projects for the coherent utilization of coal mine methane and the construction of a grain terminal.
As reported, at the end of March this year, Gorokhov confirmed the strategic plans for further investment in Ukraine, estimating the volume of UMG Investments’ investments at over $40 million annually.
Rinat Akhmetov with a fortune of $7.6 billion topped the rating of the richest businessmen in Ukraine, according to the website of Forbes Ukraine.
According to the updated rating, his fortune as the richest in the list of Ukrainian businessmen has increased from $2.8 to $7.6 billion. Now Akhmetov is ranked 330th in the ranking of the richest people in the world. Its largest assets are Metinvest ($3.3 billion) and DTEK Group ($2.1 billion).
The second place was taken by businessman Victor Pinchuk. Since June 2020, his fortune has grown from $1.4 billion to $2.5 billion. Of this amount, $800 million is real estate, $700 million is money, and $500 million is Interpipe.
Kostiantyn Zhevaho is third in the rating. His fortune increased from $1.1 billion to $2.1 billion. His largest asset is Ferrexpo ($1.4 billion).
The list includes Ihor Kolomoisky with $1.8 billion, Hennadiy Boholiubov with $1.7 billion, Petro Poroshenko with $ 1.6 billion and Vadim Novinsky with $1.4 billion.
Forbes Ukraine estimates Novinsky’s fortune in June 2020 at $810 million.
SCM Group owner Rinat Akhmetov remains the richest Ukrainian in 2019 according to the Focus magazine, with fortune of $7.2 billion.
According to the list, owner of Interpipe Victor Pinchuk with $2.4 billion and owner of Group DF Dmytro Firtash with $1.7 billion are second and third on the list.
Ex-owners of the Privat Bank Ihor Kolomoisky with $1.1 billion and Hennadiy Boholiubov with $0.9 billion, who were second and third in recent years, fell to the eighth and ninth places respectively.
Owner of Smart-Holding Vadim Novinsky with $1.5 billion climbed from the fifth to fourth position. A shareholder in Ferrexpo Kostiantyn Zhevaho with $0.5 billion fell from the fourth position to the 20th.
Ex-President of Ukraine Petro Poroshenko, the owner of Roshen, climbed from 12th to the fifth position with $1.3 billion. Owners of Epicenter K Group, Hereha couple with $1.2 billion, climbed from the 10th position to the sixth.
The seventh place on the list is occupied by the owner of Dniprospetsstal, the head of the political council of the Opposition Platform – For Life party Viktor Medvedchuk with a fortune of $1.1 billion, who entered the rating for the first time.
In addition, the owner of Fozzy Group, Volodymyr Kostelman ($0.85 billion), moved up to the 10th place from 13th.
