Horizon Capital, a leading private equity firm in Emerging Europe, has increased its stake in Datagroup, Ukraine’s leading fiber infrastructure and digital services provider, from 73.46% to 96.13%, via its $370 million fund, Emerging Europe Growth Fund II, L.P. (EEGF II).
The deal participants said in a joint press release published on Thursday that EEGF II is pleased to be the sole investor in Datagroup, alongside CEO Mykhailo Shelemba, who holds 3.87%.
As a result of this transaction, the company’s founder Oleksandr Kardakov, and other minority investors, have fully exited Datagroup. Financial details of this deal were not disclosed.
“Since assuming operational control of the company in 2016, Datagroup has completed a full business turnaround, reducing net debt to EBITDA by 9 times to a low 0.3 level today, and delivering over 20% compound annual growth in EBITDA. Datagroup continues to invest heavily into CAPEX, embarking on a network modernization program that will enhance further the high quality of services and innovation provided to its valued clients,” Horizon Capital Principal Dmytro Boroday, who leads this transaction at Horizon Capital, Said.
He also said that Datagroup has boosted its leading position in B2B, wholesale, international traffic and satellite communication segments, and is poised to deliver continued solid growth, both organically and through M&A.
“I am proud of the company’s results and the successful transformation that has taken place over the past four years. I am pleased that the company has strengthened its partnership with Horizon Capital, an investor that has backed Datagroup for many years, and wish them success in their strategic ambitions. I am confident that, together with management, they will take Datagroup forward to a new stage of growth and development,” Oleksandr Kardakov, founder and former shareholder of Datagroup, said.
Metinvest B.V. (the Netherlands), the parent company of Metinvest Group, has completed the acquisition of a stake in PrJSC Dniprovsky Coke and Chemical Plant (formerly Evraz-Dniprodzerzhynsk Coke and Chemical Plant, Dnipropetrovsk region) and currently owns about 73% of the shares of the enterprise.
“In 2014, Metinvest Group sent an application to the Antimonopoly Committee of Ukraine (AMC) for the acquisition of a controlling stake in Dniprodzerzhynsk Coke and Chemical Plant. About a year ago, the AMC approved this deal subject to a number of restrictions. Currently, Metinvest has become the owner of approximately 73% of the shares in the plant,” the company’s press service told Interfax-Ukraine.
As reported, the Antimonopoly Committee of Ukraine allowed Metinvest B.V. to establish control over the plant in connection with plans to commission new coke and chemical facilities at other plants and additional obligations of the group.
Prior to this, Metinvest received a number of permits from the antitrust authorities of other countries to acquire this enterprise, however, the transaction was not officially announced, the transfer of the plant to the group was not confirmed.
According to the National Depository of Ukraine, in the fourth quarter of 2019 Misandaiko Holdings Ltd. and Mastinto Trading Ltd. (both Cyprus) owned 23.6384% of the charter capital each, Metinvest B.V. (the Netherlands) held some 47.28%.
The charter capital of the plant is UAH 170.584 million.
Generali OFE has increased its shareholding in the holding company of Ovostar Union, a leading egg producer in Ukraine, from 9.94% to 10.93% after the deal signed on October 3, 2019.
According to a report of Ovostar posted on the Warsaw Stock Exchange (WSE) on Tuesday, before increasing its share in the share capital, Generali OFE owned 596,509 shares of Ovostar Union, after – 655,909.
The holding company of the group is Ovostar Union N.V. In the middle of June 2011, it conducted an IPO for 25% of the shares on the WSE and raised $33.2 million. The majority stake in the company is owned by Prime One Capital Limited, which is controlled by its chief executive officer Borys Belikov and Board Chairman Vitaliy Veresenko.
Cypriot Dealbeta Investments Limited, created by Emerging Europe Growth Fund III (EEGF III) managed by Horizon Capital, jointly with an individual-citizen of Ukraine, plan to acquire a controlling stake in Cypriot Ajax Cyprus Holding Ltd., a leading producer of smart security systems in Ukraine. According to a website of the Antimonopoly Committee of Ukraine (AMCU), the committee will consider an issue of acquisition of Ajax Systems Cyprus Holding Ltd by Dealbeta Investments at its meeting on September 12, 2019.
Besides, the committee will consider an issue of acquisition of Ajax Systems trading DMCC (UAE) by Dealbeta Investments jointly with an individual-citizen of Ukraine.
As reported, Horizon Capital’s Emerging Europe Growth Fund III, LP (EEGF III) has acquired a minority stake in Ajax Systems for $10 million.
In January 2019, Horizon Capital announced that Horizon Capital created the largest equity fund in Ukraine over the past 10 years: EEGF III with $200 million.
Horizon Capital was established in 2006. It manages private equity funds Western NIS Enterprise Fund (WNISEF, established in 1994 with a seed capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a seed capital of $132 million) and EEGF II (EEGF, established in 2008 with $370 million seed capital). The money of these funds is invested in projects in Ukraine, Moldova, and Belarus.
Pelidona Services Limited (Cyprus) from Smart-Holding of Ukrainian MP and businessman Vadim Novinsky has increased its stake in Regal Petroleum Plc with assets in Ukraine from 54% to 82.65%, and companies from the EastOne Group of Ukrainian businessman Victor Pinchuk sold the shares to the Smart-Holding’s company.
“A stake in the amount of 91.868 million shares was bought out from the major shareholder of Regal Petroleum Plc – Kylestone Limited – as part of the implementation of Smart-Holding’s fossil fuel production business development strategy. Pelidona Services Limited does not intend to continue the further buyout of shares in the market,” Smart-Holding said in a press release of on Friday.
“We confirm the fact of the deal to sell Regal Petroleum’s shares. The transaction was carried out as part of the portfolio strategy of the EastOne Group. We remain in the oil and gas sector of Ukraine, continue focusing on the development of assets under the group’s mandate, and exploring new opportunities,” EastOne, which includes Geo Alliance Group, a large gas and condensate producer in Ukraine, told Interfax-Ukraine.
According to the information on the London Stock Exchange (LSE) website, on the AIM platform where Regal Petroleum shares are traded, their quotations on June 20 (closure) were 39.95 pence. At that price the transaction could be valued at GBP 36.7 million (about $46.6 million).
“The results of the transaction will not affect the corporate governance of Regal Petroleum and its status as a public company. No changes are planned for the board of directors,” Smart Holding said in the press release.
The holding said that Regal Petroleum shows good performance and will continue being the basis of gas production, and its development strategy provides for both organic business growth by increasing production at existing fields and the acquisition of new assets.
“Smart-Holding is confident that deeper integration with public platforms for placement of shares is a tool for increasing capitalization, this will give gas production businesses greater stability and will open additional opportunities for mutually beneficial cooperation with new institutional investors,” Smart-Holding said.
In a stock exchange report on Friday, the majority shareholder said that the long-term development and growth of Regal Petroleum at AIM may also include expanding the shareholder base in the future.
Agrovalley Limited, controlled by the chairman of the board of directors of IMC agricultural holding, Oleksandr Petrov, on May 27, 2019 acquired 56,573 shares of IMC S.A. (Luxembourg), increasing the share in the agricultural holding by 0.17 percentage points, to 72.68%.
According to the IMC report on the website of the Warsaw Stock Exchange (WSE), the purchase price of one share was PLN 14.10 ($3.67 at the rate of the National Bank of Poland on May 28).
Agrovalley Limited after the transaction increased the total stake to 24.174 million shares.