AFK Sistema holds negotiations to acquire Investlesprom from VTB bank

AFK Sistema holds negotiations with VTB bank to acquire Investlesprom holding, one of the largest Russian forest industry companies, as RBK St. Petersburg agency said quoting major Sistema’s shareholder Vladimir Evtushenkov. He said the value of the deal may exceed $500 million.

The businessman noticed that Investlesprom is a complicated and risky asset, “frankly speaking, a venture asset”, however, it is attractive. “If there are enough people in the management team to structure it and add value, we should go into it,” Evtushenkov said.

Earlier VTB director Andrey Kostin said to Prime news agency that the bank agreed with Sistema on Investlesprom sale within one or two months.

After acquiring Bank of Moscow in 2011, VTB received a lot of non-core assets which had major debts. Debt burden of Investlesprom in 2012 was RUR 40 billion, exceeding EBITDA 2.4 times.

Karelia governor Aleksandr Hudilainen also mentioned about Sistema’s interest in Investlesprom. Earlier he announced that the company was willing to invest into Segezha pulpmill, holding’s largest enterprise.