Usmanov and partners join assets in USM Holdings

Alisher Usmanov

Alisher Usmanov is working with two long-time investment partners to join all their assets in USM Holdings, a limited liability company based in the British Virgin Islands.

The formation was conceived in early 2012 and completed in December. It holds the trio’s assets in mining, technology, telecommunications and media, and carries a value of more than $29 billion, Bloomberg reports.

“We have completed the process of consolidating assets into USM Holdings,” Usmanov said, according to Bloomberg “The formation of a single holding company enables us to optimize business processes, enhance the efficiency of managing subsidiary companies, and provide more opportunities to access international capital markets.”

Shareholders in USM include Usmanov, with 60 percent, Vladimir Skoch, with 30 percent on behalf of his son, Russian Duma deputy Andrey Skoch, and Ardavan Farhad Moshiri, with 10 percent. Moshiri was an adviser to Usmanov for 23 years.

Usmanov and Moshiri continue to separately hold their shared 29.9 percent stake in the Arsenal Football Club Plc. Usmanov, meanwhile, owns all of the newspaper Kommersant outside of USM.

Usmanov controls all of the voting rights for USM and can block the sale of any assets it holds.

Ivan Streshinskiy was appointed to the USM Holdings board and was named chief executive officer of USM Advisors, which provides advisory services to the holding entity, Bloomberg reports.

Having all the assets under one roof is expected to make it easier to manage and value them.

Prior to the transaction, Usmanov and Moshiri controlled half of Metalloinvest through Gallagher Holdings, Ltd. in Cyprus, which has since been renamed USM Steel & Mining Group, Ltd. This stake was combined with the 30 percent held by Skoch while the remaining 20 percent of Metalloinvest was purchased back by Metalloinvest from OAO VTB Bank at the end of 2012.

The company will release its earnings in April.

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