Basic Element, Sberbank and Changi Airports International sign Memorandum of Understanding for Airport Business Partnership
October 31, 2011, Moscow - Basic Element Group, LLC Sberbank Investments, a subsidiary of Sberbank, and Changi Airports International (CAI) have signed a memorandum of understanding (MOU) to form a joint venture to invest in and develop airports in Russia.
Basic Element will hold 50% plus one share, CAI will hold 30% and LLC Sberbank Investments will hold 20% minus one share in the joint venture.
Basic Element currently owns a cluster of airports in the Krasnodar region, including Sochi and Krasnodar, with total passenger traffic expected to exceed 5 million passengers per annum in 2011. Krasnodar region is an established domestic tourism destination and an important agro-industrial centre of Russia. The region will be hosting Winter Olympics-2014, F1 starting from 2015 and FIFA World Cup in 2018.
The purpose of the joint enterprise is to further develop these airports in the Krasnodar region, to improve levels of service to meet international standards, increase capitalization of the assets and also to expand the portfolio of airport assets.
The creation of the joint venture is targeted to be completed in the second quarter of 2012. It is subject to due diligence and final negotiations between the parties and approval by the regulatory authorities.
Mr Oleg Deripaska, CEO of Basic Element, said “The signing of this MOU is an important strategic step in the development of Basic Element’s airport business and is linked with our plan to increase the capitalization of our businesses by attracting partners that share our strategic views on the estimation of asset potential and development. We welcome this partnership with Sberbank and Changi Airports International.”
Mr German Gref, President and Board Chairman of Sberbank, said, “The participation of Sberbank in this newly created joint venture is part of our investment strategy, which is based on the acquisition of assets with strong prospects for growth. We see great potential for value increase in Krasnodar region airports, especially in view of the upcoming 2014 Olympic Games in Sochi, as well as the World Cup that Russia will be hosting in 2018.”
Mr Lim Liang Song, CEO of CAI said: “We are delighted with the partnership with Basic Element and Sberbank. The Russian market holds enormous potential. We look forward to a strong partnership to develop the airports in the Krasnodar region. Changi Airports International brings extensive experience in managing and consulting for airports overseas. In addition, it hopes to transfer the experience and expertise of Changi Airport Group in managing Changi Airport to this joint venture.”
About Basic Element Group
Basic Element (www.basel.ru) is Russia’s leading diversified investment and industrial group with assets in a variety of economic segments including mining and metals, power, engineering, aviation, construction, construction and agriculture.
Basic Element through its affiliates owns significant stakes in and operates dozens of companies. Many of them play key roles in their respective markets in Russia and internationally, among them UC RUSAL, Eurosibenergo, Russian Machines, Basel-Aero, Glavstroy.
Basic Element Group companies employ over 250,000 people in Russia, the CIS, Africa, Australia, Asia, Europe and Latin America.
Sberbank of Russia is the largest bank in Russia, accounting for about 27% of the aggregate Russian banking assets and employing about 240,000 people. Sberbank’s founder and major shareholder is the Bank of Russia holding over 60% of voting shares. The bank’s other shareholders comprise more than 245,000 legal entities and individuals. The bank has the largest countrywide branch network with 17 regional head offices and more than 19,000 outlets as well as subsidiary banks in Kazakhstan, Ukraine and Belarus, a branch in India, and representative offices in Germany and China. The bank holds the general banking licence No.1481 issued by the Bank of Russia.
The official website is www.sberbank.ru
About Changi Airports International
Changi Airports International (CAI) (www.cai.sg) is a wholly-owned subsidiary of Changi Airport Group. Its principal businesses are airport investments and consulting. It has been involved in the development of various airports throughout the world. CAI’s most recent projects are a 26% stake In India’s Bengal Aerotropolis Project Limited and an 8% stake in Gemina S.p.A., the holding company of Aeroporti di Roma, the operator of Rome’s airport system.
For more information, please contact:
Basic Element Group
Tel: +7(495) 729-53-83
Fax: +7(495) 729-53-70
Sberbank of Russia
Tel. +7(495) 957 5721
Changi Airports International
+65 6595 6486 (DID)
+65 9658 5945 (mobile)