The headquarters of a Chinese investment company Fosun International in Shanghai
Chinese investment company Fosun International is negotiating the entry into the investment Bank “Renaissance Capital”, belonging to the group ONEXIM Mikhail Prokhorov, said Vedomosti, citing two sources close to the investment Bank, and a source close to Fosun.
According to one of interlocutors of the edition, negotiations have been going on for a couple of months. Fosun is considered as a financial investor and control over “the Renaissance the Capital” will not receive, told close to the Bank source.
Another interviewee noted that the scheme of joining Fosun capital investment will be difficult. According to him, first Chinese investor will receive a minority stake and an option to increase the share of the development of business and profit growth of the Bank.
To report cost and other parameters of the deal, the sources difficult. “The more complex the transaction, the slower the negotiations,” said one of them.
A source close to Fosun, calls the potential deal “strategic”. According to him, the Chinese company shows high interest in emerging markets, and “Renaissance” — ready platform for access to assets in these markets”.
However, the source added that the investment Bank is a complex asset, and buying it, you need to understand why it needs such an investment and how to integrate. Fosun understands in which to invest: she sees a synergy for their business in the regions, where present “Renaissance Capital”, and realizes that it gives her additional income, says a source close to the Russian investment Bank. “We provide brokerage services in these markets, China is now in the money in these regions will go through a “Renaissance.” The Bank will receive and the investor, and a large customer flow,” he said.
Representatives of Renaissance capital and ONEXIM declined to comment, the representative of Fosun in the request is not answered, write “Vedomosti”.
According to Fitch analyst Alexander Danilov, the main question of the transaction with ONEXIM Fosun is how to take into account debts investbanka affiliated with companies, in particular, loans of $853 million, issued investbanka its parent holding company Renaissance Capital Investments Ltd. (RCIL), and the loan of $193 million subsidiary of RCIL. It is likely that the perimeters of the potential transaction includes only the part of the company for which there is no encumbrance, or shareholder of Renaissance capital in the transaction additional assets or will undertake to capitalize the company, says Danilov. Under favorable market conditions of consumer selling “Renaissance credit” would help to close the debt, but now this is unlikely, the analyst concluded.
In 2015, the profit of Renaissance capital amounted to $23 million, but the level of its rating (long-term — B – with “negative” Outlook, short-term C) negatively affected by the presence of non-core assets: loans to holding company and Ukrainian assets, said S&P analyst Victor Nikolskiy. At the same time support “the Renaissance the capital” has had and continues to have ONEXIM, says Nicholas, the current rating takes into account that the owner is willing to provide the Bank with capital and liquidity in case of need.