Ex-Wife of Russian Billionaire Closes Deal with United Arab Emirates Heritage Fund

Ex-Wife of Russian Billionaire Closes Deal with United Arab Emirates Heritage Fund

The ex-wife of sanctioned Russian billionaire Oleg Deripaska has sold a 2.6% stake in electricity and aluminum company En + Group International PJSC to sovereign wealth fund Mubadala Investment Co.
After the sale, Yumasheva’s stake in EN + will drop to 2.58%, according to a statement released on Wednesday. The Abu Dhabi Wealth Fund is paying around $ 200 million for a stake in the company founded by Yumasheva’s former husband, people familiar with the matter said earlier.

Mubadala’s total stake in En + now stands at 2.86% on a fully diluted basis, the fund said in a separate statement. The statements confirmed an earlier Bloomberg News report on the deal.

“EN + has made significant progress in recent years and is well positioned to generate sustainable value for stakeholders,” said Faris Sohail Al Mazrui, Head of Russia and CIS Investment Program at Mubadala.

Yumasheva and his father Valentin Yumashev have been looking for at least 2019 buyers of their stakes in the group, as well as stakes held by the children of Deripaska.

Yumashev said earlier that he was not selling his shares and was not aware of his daughter’s plans. The En + press service declined to comment on the financial details of the transaction. Yumasheva did not respond to attempts to contact her.

Kacy Grine, a financial advisor to several high net worth individuals in Europe and the Middle East, is advising Yumasheva on the case, according to one of the people. A representative for Grine declined to comment.

En + said in its annual report that former family members controlled 6.75% at the end of December.

American sanctions

En + was sanctioned, along with units including United Co. Rusal, by the US Treasury’s Office of Foreign Assets Control in 2018 in response to Russia’s “global malicious activities”, including the annexation of the Crimean Peninsula to Ukraine .

Treasury officials agreed to lift the sanctions imposed on Deripaska’s businesses in January 2019 as part of a deal he would step down from running the businesses. The billionaire still owns around 45% of the En + shares but, under the deal, he is only allowed to vote with 35% of the shares and the rest is controlled by independent trustees.

OFAC was “duly notified of the sale,” En + said in the press release.

The deal is one of the largest in Russia for Mubadala, which manages $ 243 billion in assets. It has around $ 2 billion in joint investments with the Russian Direct Investment Fund managed by the Kremlin.

En + is listed in London and Moscow, where it has a market capitalization of 564 billion rubles ($ 7.8 billion), but its shares are rarely traded.


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