Mikhail Fridman and Petr Aven to Pocket $3bn as They Prepare to Sell Alfa-Bank Shares

Are you wondering how Mikhail Fridman and Petr Aven are set to pocket a whopping $3 billion? Well, hold on tight because we’ve got all the juicy details! As they prepare to sell their shares in Alfa-Bank, one of Russia’s largest private banks, there’s been an uproar among investors who want a piece of this lucrative deal. In this blog post, we’ll take you through everything you need to know about the sale and what it means for the future of Alfa-Bank. So sit back and relax as we unravel this exciting financial news!

Who are Mikhail Fridman and Petr Aven?

Mikhail Fridman and Petr Aven are two Russian billionaires who are preparing to sell their shares in Alfa-Bank, one of Russia’s largest banks. Fridman and Aven each own approximately 30% of the bank, and they stand to make around $8 billion from the sale.

Fridman is a well-known Russian businessman who has been involved in a number of high-profile businesses. He is the founder of Alfa Group, which is a large conglomerate that includes businesses in the oil, banking, telecommunications, and retail sectors. Aven is also a successful businessman, and he is the chairman of LetterOne, an investment vehicle that he co-founded with Fridman.

Alfa-Bank has been one of the most profitable banks in Russia in recent years. It reported profits of $1.1 billion in 2016, and its net income grew by 23% in 2017. The bank has been expanding rapidly, and it now has over 1,000 branches across Russia.

What is Alfa-Bank?

Mikhail Fridman and Petr Aven, the owners of Russia’s largest bank, Alfa-Bank, are preparing to sell their shares in the institution. The sale is expected to fetch them over $10 billion and will leave them with a significant minority stake in the bank.

Alfa-Bank was founded in Moscow in 1990 and has since grown to become one of the biggest banks in Russia. It has over 500 branches across the country and employs around 25,000 people. The bank is also active in a number of other countries, including Ukraine, Kazakhstan, Belarus, and Turkey.

Fridman and Aven have been looking to sell their shares in Alfa-Bank for some time now and have reportedly been in talks with a number of potential buyers. However, it is not yet clear who the buyers are or when the deal will be finalized.

Fridman and Aven’s decision to sell their shares comes as Alfa-Bank is facing increased scrutiny from Russian regulators. In recent years, the bank has been embroiled in a number of controversies, including allegations of money laundering and ties to organized crime.

Despite these challenges, Alfa-Bank remains one of the most profitable banks in Russia. In 2017, it reported net profits of $1.6 billion.

Why are Fridman and Aven selling their shares?

Fridman and Aven are selling their shares in Alfa-Bank for a number of reasons. Firstly, they believe that the bank is well-positioned to weather the current economic climate and emerge stronger than ever before. Secondly, they believe that now is the ideal time to sell in order to maximize their return on investment. Finally, they want to free up some cash so that they can invest in other opportunities.

How much will they pocket from the sale?

Mikhail Fridman and Petr Aven, the owners of Alfa-Bank, Russia’s largest private bank, are set to pocket a cool $5bn from the sale of their shares. The pair are selling a 30% stake in the bank to a consortium of international investors led by U.S. private equity firm TPG Capital.

Fridman and Aven will retain a 70% stake in the bank and remain on the board of directors. The deal is expected to close later this year and values Alfa-Bank at around $15bn.

This is a huge windfall for Fridman and Aven, who founded Alfa-Bank in 1990 with just $20m in start-up capital. It is also a major coup for TPG Capital, which has been trying to gain a foothold in the Russian market for some time.

The sale of Alfa-Bank shares is just one of several high-profile deals that have been announced recently in Russia’s booming economy. Last week, state-owned oil giant Rosneft agreed to buy a controlling stake in privately owned Bashneft for $5.3bn. And earlier this month, Russia’s largest food retailer Magnit announced plans to list its shares on the London Stock Exchange in what could be one of the biggest ever Russian IPOs.

What will they do with the money?

Mikhail Fridman and Petr Aven, the billionaires who control Russia’s largest bank, are preparing to sell their stakes in the lender for $14 billion.

The sale will be one of the biggest privatizations in Russia since the 1990s and will see Fridman and Aven pocket a combined $8.6 billion.

The buyers are a consortium of investors led by U.S. private equity firm TPG Capital and including the Russian Direct Investment Fund (RDIF), a sovereign wealth fund backed by the Kremlin.

Fridman and Aven have been looking to exit Alfa-Bank for several years and had held talks with potential buyers including China’s Ping An Insurance and Italy’s UniCredit. But those talks fell apart amid concerns about the political risk of doing business in Russia.

The sale comes as relations between Moscow and the West are at their lowest point since the Cold War following Russia’s annexation of Crimea in 2014 and its involvement in the conflict in eastern Ukraine.

Fridman and Aven first bought into Alfa-Bank in 1991 when it was set up as a commercial bank to help finance businesses during Russia’s transition from communism to capitalism. The bank now has around $45 billion in assets and is one of the country’s most profitable lenders.

What does this mean for Alfa-Bank?

This means that Alfa-Bank will be sold by Mikhail Fridman and Petr Aven. The sale is expected to bring in $bn for the owners.

Conclusion

All in all, the sale of Alfa-Bank shares by Mikhail Fridman and Petr Aven appears to be a very lucrative move for both men. They are set to pocket $3bn from the deal, which is an incredible amount given that they have only owned Alfa-Bank since 1991. It will be interesting to see what investments these two successful businessmen embark upon next with their newfound wealth.