“Rosneft” made a purchase of its own shares from the state

Photo: Artyom Korotayev/TASS

“Rosneft” considers possibility of purchase of its own shares from Rosneftegaz, said a company spokesman Mikhail Leontyev, but the share is not called. Informed that the government is discussing the sale of “Rosneft”19,5 percent of its own shares, wrote “Vedomosti”

The company “Rosneft” is ready to buy its own shares from state-owned Rosneftegaz. Comments about this business FM said the press Secretary of the company Mikhail Leontyev.

“In fact, we are willing to buy our shares. We love your shares. In General it is a trivial procedure in any company, — said Leontiev. — If we have the opportunity to purchase our shares, we are very seriously considering this issue, proud of it, not ashamed.”

Leontyev added that “Rosneft” believes “in an enormous potential to improve the company’s capitalization” and the company “fundamentally undervalued”

“Absolutely confident that the shares [of Rosneft] will be much more expensive and the company can make huge additional profits, – said Leontiev channel RBC. – With regard to the insane hysteria about savvycom. We did not determine the order of sale be determined by the government. We are in the best interests of the company stocks and want to buy. How much is another question.”

On Wednesday, the newspaper “Vedomosti” wrote that the government is discussing the privatization scheme “Rosneft” in which the company can buy back its stake of 19.5% in “Rosneftegaz” for 700 billion rubles. it is Expected that in the future, this package can be sold to a strategic investor or parts on the market.

In the message of Fund Energy, owned by former energy Minister Igor Yusufov, said that such a scheme is “a perfectly normal market mechanism in the world practice in all sectors of the economy.”

Raiffeisenbank experts pointed outthat the company can have enough money for the purchase of own shares and stake in Bashneft. Analysts also pointed out that in the case of purchase of shares of “Bashneft” and a native package on the company’s accounts to the end of the year could be about $5.7 billion.

“Thus, such a scheme of privatization, which the company will give to the budget almost all of its accumulated liquidity should not lead to an increase in the company’s needs for new loans,” claimed the experts.

Raiffeisenbank analysts also admitted that the purchase by Rosneft of its own shares may cause a temporary shortage of currency in the local market. “It is fraught with short-term impact on interbank rates (increase them. — RBC) in foreign currency operations before the end of the year,” said analyst Denis Poryvai in an interview with RBC.

The Minister of economic development Alexei Ulyukayev in an interview with reporters earlier Thursday, said that the deal for the privatization of 19.5% of Rosneft could take place in November, passed “Interfax”.

Earlier in the day the government approved the purchase of 50,0755% Bashneft Rosneft. The amount of the transaction can be 329,6 billion. “Until October 15 to have time to obtain all the necessary approvals to close the transaction. The Board of Directors of “Rosneft” has already approved it,” said one of the interlocutors RBC.

$3.9 billion on the hook: how John Morris was the “Director of fishing” in the United States

John Morris, founder of Bass Pro Shops

Photo: Chris Graythen/Getty Images for Stewart-Haas Racing/AFP

John Morris began to trade fishing gear in the corner of his father’s liquor store. Now the owner of a fortune of $3.9 billion holds a major deal in the American market of goods for hunting and fishing, the volume of which reached $50 billion

Between the first and second

In the beginning of this week it became knownthat the biggest deal in the American market for hunting and fishing still take place. The market leader company Bass Pro Shops agreed the terms absorb the second-largest retailer Cabela’s: total transaction amount is $5.5 billion.

Because Bass Pro Shops is a private company, and Cabela’s public, ahead of the unions of the last quotation at the opening of the trading day on Monday, October 3, soared by 15% and continues to grow, reaching $64 per share.

For the full year 2015 revenue Bass Pro Shops amounted to (according to Forbes) of $4.45 billion, the company has 94 outlets, which employ 22 thousand people. Revenue also Cabela’s has reached last year of $3.99 billion, the company owns 85 stores and employs 19 thousand people. According to estimates of analysts of the investment firm Stiefel, the combined Corporation in the future will control more than 20% of the market of hunting, fishing and camping services of the United States, the total amount reaches $50 billion.

That is the largest in the United States network of hunting and fishing stores plans to absorb the second-largest player, the Agency Reuters reported in November 2015. After the death a year earlier, the elderly founder of Cabela’s dick Cabela with 11% of the shares of the company Investfond Elliott Management (led by investor-“the vulture” Paul singer) called for “a search of strategic alternatives” the company’s development, referring to its sale.

It is expected that the transaction will be finally closed in the first half of 2017. By this time in the United States will have a new administration, and it is difficult to predict what position it will take on the question of free sale of the weapon (and it takes a considerable share in the range of shops Bass Pro Shops). In any case, sales in both firms received in 2013, serious momentum amid talk of tightening of the rules on the acquisition of weapons, notes the trade publication Sporting Classics.

One of the stores of Cabela’s in Greenville, South Carolina. Photo made October 4, 2016, the day after Bass Pro Shops announced the acquisition of the network of Cabela’s Photo: Luke Agripina Hyman/Bloomberg

Tackle instead of whiskey

Founder, owner and CEO of Bass Pro Shops is American John Morris. Control functions it shares with the President and COO Jim Chagala, but Morris (whom colleagues and journalists call “johnny”) is a face of the company. He himself half-jokingly calls the “Director of fishing” (chief fishing officer).

As of autumn 2016 the wealth of the Morris reaches $3.9 billion according to Forbes magazine. In this week’s list of 400 richest Americans he is a 148-th line.

Morris was born in 1948 in Springfield, the third largest populated area of Missouri. Subsequently, it was here johnny to get an education, start their own business and have a family. Now Springfield is the headquarters and flagship store of Bass Pro Shops, there lives and Morris.

Long before the birth of her son in 1937, the father of billionaire John Morris Sr. opened in Springfield liquor store, Brown Derby. At that time, after the abolition of “prohibition” only a few years, and the demand for legal alcoholic beverages was great. Network alive today: the Brown Derby has 18 stores in Missouri, the company’s annual turnover is estimated in $30 million.

Operated business the Brown Derby owner Ron Junge, son of Morris Sr. and, accordingly, the husband of the sister of the owner of Bass Pro Shops. To work in the company he started in 1971, when Morris, Jr. (formally the heir to the family business) finally decided for himself that he will not continue his father’s business.

The Pyramid Of Cheops

To the beginning 1970-x of years, johnny Morris received a bachelor’s degree in business and Economics at the Springfield Drury University (one of the best private schools in the American Midwest). Formally, he was ready to inherit the family business, but all the attention johnny was completely focused on his favorite hobby — fishing, specifically, fishing for perch, which in English is called bass. This is one of the national Hobbies in the States.

In 1970 Morris, Jr. participated in the competition for perch fishing Bassmaster, where seriously interested in what bait and equipment are used by experienced fishermen. He was struck by the fact that in many cases the lure was homemade.

Frustrated by the meager range of lures for sale Morris Jr. the following year decided to open in his native Missouri own bait shop. For this he rented from the company U-Haul a small trailer and traveled the country in search of the most modern and unique equipment. Returning to Springfield with goods bought on borrowed dad $10 thousand, he requested a corner area of only 6 sq m family liquor store, which has equipped the counter and began to sell. Johnny then was 23.

Business Morris, Jr. relied on the presence of low supply and high demand. Shop Brown Derby was located on the outskirts of Springfield, on the way to nearby lake table Rock, which from the 1960s years has gradually become an important center of sport fishing.

Subsequently, Morris will make a careful approach to the placement of outlets with its strategies of business expansion. Of the nearly hundreds of the largest stores are located in important tourist locations. For example, near the Disneyland in Orlando (Florida) Central highway Las Vegas, inside the famous sports-concert complex “ocean” in Memphis (Tennessee), etc.

In addition, the stores are Bass Pro Shops are a fully-fledged entertainment centers. Each of them is furnished on the basis of the fauna of the region where it is located, each of them lectures about fishing and wildlife and a variety of workshops: for example, in rock climbing, archery, cooking in field conditions.

A creative approach to the creation of each new point stores makes Morris one of the most visited locations in the United States. Of the 94 stores in the lead of the flagship store network (almost 50 thousand sq m) in the home for the businessman Springfield: about 4 million visitors a year. About as many tourists are attracted by the arch of the gateway arch in St. Louis — two attractions constantly dispute the title of the most popular locations Missouri. For comparison, the Eiffel tower in Paris attracts about 7 million tourists a year.

So says Morris

“For us it was more important to make our clients joyful, rather than calculating financial return from it. Buy a boat and get happiness in return! It is important to sell not only the thing itself but the feeling of joy that this thing is” (in an interview with USA Today, 2009).

“The history of the Bass Pro Shops could only happen in America — the country of free enterprise where the system itself business rewards such virtues as hard work, commitment to values, innovation and friendly service” (in a conversation with Bloomberg, 2013).

“I want our brand has stood the furthest distance. Does this mean that sooner or later I have to go on exchange? Not sure, but more importantly, what we should proceed, that the interests of the company. Say today, say, no, we must always remain a private business, it would be wrong. You need to constantly examine the circumstances around” (in an interview with Springfield Business Journal, 2015).

Livin ‘ on the edge

However, in the early 1970s, years johnny Morris was only a Department in his father’s shop and a wagon full of homemade lures and equipment. To move beyond regional trade “for their” in 1974, he ordered the printing of the first batch of catalogs Bass Pro Shops, which were sent mail order. Initially, the audience of these directories were fishermen from neighboring States who came to the lake table Rock and familiar with Morris, who planned to choose a new bait is not on the way back through Springfield and at home, in a relaxed atmosphere.

Nationally famous Morris acquired in 1978, when came up with the idea to create a small, cheap and mass model of a boat made of aluminium, adapted specifically for anglers fish. “It was the biggest gamble in the history of the company”, recalled then a businessman. Included with the boat “the load” was sold motor and trailer, and sales are made primarily through the same directories. In the end, the gamble proved successful, and this model, called Bass Tracker, has become one of the most popular fishing boats in USA.

U.S. President George W. Bush visits Central store Bass Pro Shops in Springfield, Missouri. The photo was taken in February 2004, shortly after the re-election of Bush for a second term Photo: Reuters/Pixstream

After a few years, Morris took another risky decision, which also affected the growth of his business. In 1981, he decided to invest surplus funds in real estate and bought in Springfield 7.5 thousand sq. m of retail space. For a while he didn’t know what to do until he spied, like other retailers develop the space of a trading hall: aquariums, waterfalls, exhibitions and so on.

As later recalled the businessman, he had certain doubts that banks will be willing to provide a credit line “all this beauty”, at least because he had no plan of return of investments. However, steadily rising revenue (in particular from the boat business) played on his arm and allowed to make a loan. Since the opening in 1982 of a new store in Springfield, its area is increased six times and now stands at more than 46 thousand square meters.

Morris remains a keen fisherman. Realizing that passion sometimes gets sober to do the finances, he hired Jim Chagala to the position of chief operating officer. His task himself, Hegel describes as follows: “to bring a little discipline to the vision of the business without diluting with this very concept, otherwise we turn into the usual sellers of rifles and rubber worms.” The explosive expansion of Bass Pro Shops across the United States occurred just after coming Hagala in the early 2000-ies. This is partly due to the fact that the previous decade, the Corporation saved power by opening new points every couple of years.

Lord of war

The crisis of 2008 has adversely affected the Affairs of Morris. According to him, about a third of potential clients were unable, for example, to take a loan to buy the boat. The pace of opening new stores fell from eight to two pieces a year, began reducing staff. The improvement of the economic situation in the United States in early 2010-ies again has led to the growth of the business. 2015 in just one year the network added six stores, one of them is in canadian Dieppe, another to the already mentioned “Pyramid” in Memphis, which is the shopping area (almost 50 sq. m.) exceeded the Central store in Springfield.

“The difference between Bass Pro and traditional retailers lies in the purpose of the visit. A trip to the store of Morris is in every sense of the word a family pastime, this is an element of entertainment,” — said in comments to Bloomberg analyst at Standard & Poor’s Christina Kostunici.

The image of Morris as a family entertainment centre with cafes, fountains and master classes — is in a strange neighborhood with an extensive division of hunting equipment that is present in each outlet. Selling weapons for Morris is not a priority of the business, but the opportunities of open implemented, it uses in full, especially after a surge in demand for firearms.

On this basis, sometimes there are serious scandals. For example, James Holmes shot and killed in 2012, 12 people in the cinema town Aurora (Colorado), part of his Arsenal of legally bought Bass Pro Shops in Denver. Subsequently, a group of senators sent a leading gun shops (including Bass Pro Shops and bought the network is now Cabela’s) asking them to waive their right to sell weapons, if the test customer loyalty will be delayed more than three days.

Morris not publicly commented on the problem of free sale of weapons. However, it cooperates with the National rifle Association (NRA), which is the main lobbyist to preserve the right to keep and bear arms. With 2013 in the Central store Bass Pro Shops in Springfield operates one of the three museums of the NRA, which presents more than 1 thousand samples of weapons, including personal rifles American presidents.

The sports-concert complex “the Pyramid” in Memphis, Tennessee. In April 2015 Bass Pro Shops opened in the “Pyramid” own the largest store area of 49 thousand sq. m Photo: Reuters/Pixstream

John Morris in numbers

$3.9 billion — as Morris October 2016

94th place is Bass Pro Shops among the largest private companies in the US

$189 million — net profit Bass Pro Shops for 2015

$10 million cost of the first batch of goods purchased by Morris

22 thousand employees work in its stores

49,2 thousand square meters — the area of the largest store of Morris in Memphis

5 million liters — the volume of the aquarium under construction in the Central store of Morris in Springfield

Sources: Bloomberg, Forbes, The Wall Street Journal, company data


New head of AVTOVAZ announced plans to replant taxi drivers on Lada

Lada Vesta

Photo: Oleg Yakovlev/RBC

AvtoVAZ plans to enter into an agreement with a major taxi aggregator in analogy to contracts with Volkswagen and Toyota with Gettaxi, Uber, said its President, Nicolas Moore. If you convince taxi drivers to use Vesta, it will help to attract new customers, he said

AVTOVAZ “has plans” to enter into agreements with the companies, aggregators taxi, said in an interview with RBC AVTOVAZ President Nicolas Moore. “If we can convince the taxi drivers to use Vesta, it will show the customers in airports, railway stations and on the streets, sitting in a Lada is not the same as sitting in the old “Zhiguli” or even “Samara”, — he said.

Moore did not name potential partners, but noted that negotiations will take several months: “We want to do it quickly.”

In may it became known that the German automotive concern Volkswagen has invested $300 million in the online service taxi service Gettaxi and agreed with the company on “strategic partnership”. In particular, it is assumed that the customers Gett will be offered “better conditions for cars of the brand Volkswagen.” Shortly before the American General Motors invested $500 million in mobile service for taxi Lyft. Almost at the same time, the Japanese Toyota announced about investments in Uber and partnership with the company, which involves the leasing of cars available for Uber drivers (the amount of investment Toyota has not disclosed).

A representative of one of the largest in Russia of the services of online taxi “Yandex.Taxi” Elina Stavisky told RBC that the company was “not aware” of plans of AVTOVAZ and is not negotiating with the manufacturer. Representatives Gett and Uber declined to comment. But sources in these companies assured that also do not negotiate with AVTOVAZ. A source close to Gett, explained that the agreement with Volkswagen service has fairly strict conditions that do not allow to enter into partnership agreements with other car manufacturers.

According to Maura, change the image of Lada, one of its main objectives, and partnerships with taxi services can help. “We need to change the image of Lada, to become not only a symbol of the Soviet Union 50 years ago, but to be perceived such what it is now — as a Russian brand with global technology filling machine with unmatched value and quality for the consumer. That’s all that we have to do, especially in communications with the consumer,” he said.

As the main competitors of AVTOVAZ Moore called the Korean brands (Hyundai and Kia), which, according to him, Lada does not concede on technical characteristics. “The quality in AVTOVAZ cars comparable with international manufacturers — B0 line in Togliatti are produced not only Lada, but also Renault and Nissan cars” — adds the Vice-President of AVTOVAZ for external relations, RAF Shakirov. For engineering at AVTOVAZ meets German Harald grübel, for quality — Japanese expert Shigeru Nakamura, and for the design of Englishman Steve Mattin, at the time, created the Mercedes S-class “Scout” and Volvo, he says.

Read more , see the interview with Nicolas Mora: “People have to believe that the Lada is not a bad choice”

The government issued a Directive on the purchase of Bashneft by Rosneft

First Deputy Prime Minister Igor Shuvalov

Photo: Alexei Druzhinin/TASS

Large-scale privatization

Dvorkovich has confirmed plans to collect in the budget income from the sale of “Rosneft”
Yesterday, 11:52

Raiffeisenbank predicted shortage of currency because of the scheme of sale of “Rosneft”
5 Oct, 20:57

97 more materials

The Directive requires state representatives on the Board of Directors of “Rosneft” to vote for the purchase of a controlling stake of “Bashneft”. Igor Sechin instructed to sign the contract and get all the approval for the transaction until 15 October

First Deputy Prime Minister Igor Shuvalov has approved a government Directive, according to which the state representatives in the Board of Directors of “Rosneft” prescribed for voting to support the purchase by a controlling stake of “Bashneft”, follows from the messageposted on the government website.

The representatives are instructed to vote for the purchase of state-owned shares “Bashneft” in 50,0755% of the share capital of the company, the price should not exceed 330 billion rubles, the report says.

According to the second Directive, the representatives of the States must vote to instruct the head of the company Igor Sechin to 15 October 2016 to receive the approval of all regulators and sign the contract of purchase and sale of shares of “Bashneft”.

Two sources in the Ministry told RBC that the Directive Shuvalov signed on 1 October. That day, the Board of Directors of “Rosneft” has approved participation in a “substantial deal”. The company announced on 4 October, without revealing the details of the transaction.

A Federal official told RBC that the Directive is permissive is an indication that Rosneft may participate in the transaction on privatization of “Bashneft”, but all details of the transaction, including whether auction or direct sale will be listed in the order of the government, which will be released separately. Of time the source is not indicated.

The source of RBC in the Ministry also confirmed the permissive nature of the Directive, adding that she doesn’t mean a direct sale of the asset is Rosneft, and we should expect government regulation, which indicate the structure of the transaction.

“Until October 15 to have time to obtain all the necessary approvals to close the transaction. The Board of Directors of Rosneft has approved it” — says one of the interlocutors RBC.

Initially, the government planned to sell state-owned shares “Bashneft” in the September-October 2016. E&Y at the request of the organizer of the deal, “VTB Capital” has estimated a package in 297-315 billion RUB applied LUKOIL, the Independent oil and gas company, Fund Energy, Antipinsky oil refinery, RDIF, “Tatneft”, “Tatneftegaz” and “Rosneft”. However, the participation in the privatization of “Bashneft” was called into question: in particular, it was opposed by Deputy Prime Minister Arkady Dvorkovich and presidential aide Andrei Belousov.

“It’s kind of stupid to “Rosneft” was involved is one of state company participated in the privatization of other”, — said Belousov, who also holds the post of Chairman of the Board of Directors of “Rosneft”.

In mid-August, the government postponed the privatization of “Bashneft” for an indefinite period. September 30, Igor Shuvalov saidthat the process of sale of “Bashneft” renewed and “Rosneft” approved for privatization. 3 October, “Kommersant” with reference to sources wrotethat the government is considering the sale of “Bashneft” directly “Rosneft” approximately 325 billion rubles ($5.2 billion).