A1 to invest more than $1 bln in Russian assets in 2016–2017

MOSCOW, Jul 19 (PRIME) -- A1, the investment arm of billionaire Mikhail Fridman’s Alfa Group, plans to invest at least U.S. $1 billion in Russian assets in 2016–2017, A1 President Alexander Vinokurov told reporters Tuesday.

“We are interested in assets that have potential of becoming industry leaders and maintaining the status for several years. Our goal is to ensure a U.S. dollar–denominated return on investment of at least 25%,” he said.

A1 will invest no less than $50 million in a project, and it aims at purchases of blocking or controlling stakes, he added.

The company is interested in underpriced assets that will be sold at a discount to the market price. “We are looking at assets in agriculture, in petro chemistry, at assets that have synergy with Alfa Group, at underpriced assets in the financial sector, at insurance companies, at retail assets,” he said.

The investment company is engaged in a large-scale project in a non-grocery retail sector and in an online business project. Vinokurov refused to disclose any details of the projects, but said that they will be announced in two months.

A1 is also working with an $850 million portfolio of bad assets that were transferred under the company’s management by banks, he said.

He also said that the investment company does not plan to participate in Russia’s privatization. “So far we have seen nothing that corresponds to the company’s global profile,” he said.

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