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Russian tycoon Vekselberg sets up Swiss board to manage assets

February 18, 2014 at 10:44 am EST

MarketScreener.com By The editorial team

Russian tycoon Vekselberg sets up Swiss board to manage assets

MOSCOW (Reuters) - Russian billionaire Viktor Vekselberg, who sold out of Anglo-Russian oil giant TNK-BP a year ago, is forming a new board for his Swiss-based investment vehicle made up of international executives to focus on global expansion, he said on Tuesday.

The new board for his Zurich-based company - Renova Management AG (RMAG) - will manage his international businesses, mainly Swiss industrial companies Oerlikon (>> Oc Oerlikon Corporation Pfaeffikon AG) and Sulzer (>> Sulzer AG), and potentially other assets.

Vekselberg also owns nearly six percent of aluminum giant Rusal (>> United Company Rusal Plc) as well as Russian assets ranging from construction to energy.

The board will be chaired by Vekselberg, who made his money in metals and energy and is now worth more than $15 billion according to Forbes. It will include Deutsche Bank supervisory board member Peter Loscher, as well as former Deutsche Bank CEO and Anglo-Dutch oil major Royal Dutch Shell board member Josef Ackermann.

The move will allow RMAG to focus on the next phase of its development, involving further growth and international expansion, Vekselberg said in a statement.

"There are no immediate plans to enter new assets using RMAG as a managing company now, but its new board may provide some ideas soon giving its best expertise," said Renova's spokesman Andrey Shtorkh.

Loscher, a former chief executive of German engineering group Siemens (>> Siemens AG), will also be offered an opportunity to invest in the assets managed by RMAG.

Vekselberg was part of the Alfa-Access-Renova (AAR) consortium of four Soviet-born billionaires who sold out of TNK-BP last year to Russian oil giant Rosneft (>> Rosneft' NK OAO), reaping $27.7 billion between them and around $7 billion for Vekselberg himself.

He is also president of government-funded high-tech developer Skolkovo Foundation.

(Reporting by Megan Davies and Polina Devitt, editing by David Evans)

Stocks treated in this article : Siemens AG, Oc Oerlikon Corporation Pfaeffikon AG, Sulzer AG, United Company Rusal Plc, Rosneft' NK OAO

Stocks mentioned in the article

Add to a list Add to a list 0 selected To use this feature you must be a member Log in Sign up	Price	Change	5d. change	Capi.
LME ALUMINIUM CASH	1,687	+0.06%	-1.03%	-
OC OERLIKON CORPORATION AG	3.896 CHF	-0.10%	-0.76%	1.39B
SULZER LTD	109.2 CHF	-0.91%	-3.02%	4.09B
UNITED COMPANY RUSAL, INTERNATIONAL	2.55 HKD	-3.04%	-6.25%	5.1B
ROSNEFT OIL	351.2 RUB	-3.77%	-.--%	35.5B
RENOVA, INC.	1,332 JPY	-2.42%	-4.99%	802M
SIEMENS AG	173 EUR	-1.46%	+0.17%	147B
SHELL PLC	2,851 GBX	+0.33%	-2.93%	227B

Viktor Vekselberg

In 1979, Viktor Vekselberg is graduated from the Institute of Moscow railway (MIIT). He specializes in systems engineering. He continued his studies at the Computing Centre of the Academy of Sciences of the USSR.

In 1998 he founded with friends a company called KomVek (Kompanie Vekselberg), active in software development and import of used computers. From 1991 to 1996 he was Deputy Director General of ZAO Renova that he founded with Leonard Blavatnik. Two thirds of the shares are held by KomVek and one third is held by the investment fund owned by Access Industries Blavatnik.

In 1996 he participated to the creation of the Siberian-Urals Aluminium Company (SUAL). Conducted by Viktor Vekselberg, the company Renova started buying shares in oil companies, including a majority stake in TNK. A year later, he joined the board of Tyumen Oil Company (TNK), and in April 2002 he became President of TNK.

In January 2003 he was appointed chairman of the board of SUAL-Holding. In February 2006 he announced that the company SUAL is looking for a strategic partner. Negotiations began with its main competitor Rusal, owned by Oleg Deripaska. Rusal and SUAL merged in August 2006. Deripaska received a 75% stake in the new company, while Viktor Vekselberg got 25%. The merged group controls 100% of the Russian aluminum market and creates a monopoly. The new giant has a production capacity of over 4 million tons of aluminum per year.

In October 2006, Rusal and Sual merge with Glencore. The merger is finalized in March 2007 and gave birth to the number one of the aluminum in the world: United Company Rusal. The new group goes public a little over a year later. Russian billionaire Oleg Deripaska became the main shareholder of the new company by receiving a 66% stake. SUAL acquires 22% and Glencore 12%. Vekselberg is chairman of the board of directors of the company.

In April 2007, Vekselberg decides to become the largest shareholder of the investment fund Pallinghurst Resources, operated by Bryan Gilbertson. The fund has acquired the legendary brand Fabergé in 2007. Vekselberg is obsessed with Faberge eggs. He is the biggest collector: in 2004 he bought nine Faberge eggs at an auction and received other items of Fabergé - brooches, snuff boxes... The collection was exhibited in the Kremlin and in Dubrovnik in 2007. Vekselberg made regular donations to foundations and cultural museums in Russia.

Today, the empire of Viktor Vekselberg continues to expand. Recently, the oligarch, who owns 13.7% of OC Oerlikon Zurich Group, announced plans to invest $ 300 million to create the largest hotel chain in Russia. He also manages mining projects in South Africa. According to Forbes, in 2011 th property of the magnate of energy and metallurgy sectors weighed 13 billion.

In March 2010, President Dmitry Medvedev chose Viktor Vekselberg to supervise the "Silicon Valley" near Moscow. This technology center is supposed to ensure the modernization and diversification of the Russian economy based mainly on the exploitation of oil and gas. The project would develop into five areas: energy technology, information technology, telecommunications, nuclear and biomedical technologies.

In March 2012, Viktor Vekselberg resigned as chairman of Rusal.

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Linked companies
Renova Group of Cos. Renova Group of Cos. Investment ManagersFinance Renova Group of Cos. provides asset management, portfolio management and investment advice services. The firm makes investments in metals, mining, chemical, construction, transport, energy, telecommunication, high-tech machine building, public utilities and financial sectors. The company was founded in 1990 and is headquartered in Moscow, Russian Federation.	Founder
Renova Management AG (Switzerland) Renova Management AG (Switzerland) Miscellaneous Commercial ServicesCommercial Services Renova Management AG engages in the provision of consulting and investment management services. The company was founded on January 15, 2004 and is headquartered in Zurich, Switzerland.	Chairman

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