DEAL CLOSED: ONEXIM GROUP ACQUIRES A 51% STAKE IN RBC-TV MOSCOW
ONEXIM Group (hereinafter referred to as "ONEXIM") announced acquisition of a 51% stake in ZAO RBC TV Moscow (hereinafter referred to as the "Company" or "RBC"). The deal was closed upon completion of negotiations between the Company and its creditors on the RBC’s debt restructuring terms, and following approval of ONEXIM Group's application by the Russian antitrust authorities.
Under the terms of the deal, ONEXIM acquires a 51.1% stake in ZÀÎ RBC TV Moscow (formed to consolidate the assets of OAO RBC Information Systems as part of the debt restructuring exercise) through an additional share issue for $80mln USD. The remaining 48.9% in ZÀÎ RBC TV Moscow will be subsequently swapped for a 100% stake in OAO RBC Information Systems. The funds raised in the course of the transaction will go to service the debt restructuring process, finance the Company's operations, along with programs for its further development.
Under the restructuring scheme proposed by ONEXIM Group in July 2009 and approved by the Company and its creditors, half of RBC's debt will be converted to five-year bonds with a coupon rate of 7% per annum, with the other half being transferred into eight-year bonds at a 6% p.a. coupon rate. Creditors participating in the debt restructuring process will be able to get 5% of the total debt amount as cash payment. Creditors who do not accept the eight-year bond maturity plan will be entitled to partial repayment in cash with respect of the other half of the debt. The remaining part of the Company's debt will be written off. The proposed terms were agreed with the Company’s creditors in May 2010.
As a result, the proposed restructuring scheme was approved by over 97% of all creditors. The Company is due to effect the final settlements with creditors, including transfer of new instruments and payments, in the course of the next two to three weeks.
"Closing the deal - which took over a year to be approved - starts a new stage of the Company's development. As controlling shareholder, we are keen on long-term and sustainable growth of RBC's business value. We intend to provide every assistance to the Company and work to increase its market capitalization," Dmitry Razumov, General Director of ONEXIM Group, said.
"I would like to express my gratitude to our shareholders, clients, partners and employees for their support and confidence in RBC. Together with ONEXIM Group, RBC will be in the position to implement even more ambitious projects, raising the efficiency of those already in the pipeline, and bringing the company to a whole new level," RBC's General Director German Kaplun stated.
Renaissance Capital and Herbert Smith acted as ONEXIM’s financial and legal advisors in the deal.