The government will save “Vologda butter” from privatization at auction

Notice of cancellation of auction on sale of 100% shares of JSC “experimental dairy plant of Vologda state milk-economic Academy. N. In. Vereshchagin” (the basic brand — “the Vologda oil”) appeared on the website of the Russian auction house (RAD) on the morning of Wednesday, 17 February, a few hours before the start of trading.

The reason for the cancellation was the order of the Russian government dated 12 February, the report States. According to a source in the government, even before — in the late evening of Tuesday, the Agency was still preparing to hold an auction. One of the contenders for “Vologda butter” — a Fund managed by “Aton Capital” entering into group “Aton” Evgeny Yuriev — confirmed that will participate in the auction.

Official notice of cancellation of auction “Aton Capital” received February 17, at 11 am, and trading should begin in 13 hours, said the General Director of “Aton Capital” Andrey Tikhomirov. “Now will be offered another option of selling the plant, namely hiring an investment consultant, which will conduct a new assessment of the plant and will pick a strategic investor for resale”, — Tikhomirov informed. For participation in auction “Aton Capital” made a Deposit in the amount of 216 million roubles, now in accordance with the procedure of the auction it will be returned within five days, said the Manager.

A source close to the government, asserts that even before bidding the preparations were in full swing — “it was done on the basis of telephone conversations between Ermolaevsky lane [there is an office of the Agency] and Krasnopresnenskaya embankment [where is the White house]”. But by the morning of 17 February from the White house came a new signal, he says.

Another official said that the decision to prepare the enterprise for sale on a General basis were accepted in 2012 with the support of first Deputy Prime Minister Igor Shuvalov. Shuvalov is responsible for privatization and ensure fulfillment of the forecast plan for the sale of assets, the basis of which constitute enterprises of small value. But, he continues, against the sale of the plant objected in charge of agriculture, Deputy Prime Minister Arkady Dvorkovich; in the end, Shuvalov asked him to make a final decision on the feasibility of privatization.

Another government source said that on Tuesday the sale of the company was personally blocked by Prime Minister Dmitry Medvedev. Probably now, instead of auction is a competition, as the competitive documentation will allow you to set a number of priorities for the privatization criteria, says the source: for example, the buyer may be determined by the Russian company, the company will retain its profile, staff would not be reduced and so on. Press Secretary of Medvedev Natalya Timakova said that “the order of the Dvorkovich came out three days ago,”: needed “more time to identify the investors and confirm that these investors comply with the conservation requirements of the brand and production, given their importance to the industry.”

“Now the White house is inclined that we should hold a competition to get tougher to record the conditions of privatization,” said another official.

The contest extends the capabilities of the seller at the buyer’s option, agrees the managing partner of legal company Art De Lex Dmitry Magonya: “For example, one of the conditions of contest can be an investment in privatization. The seller can limit the number of participants, put the condition that the buyer can speak only Russian investor, and to prohibit use as a source of financing of the state Bank. Also, the seller may require the buyer was a company with experience in the industry.”

The Federal property management Agency put the plant up for auction at a starting price of 1.08 billion rubles with a step of 500 thousand rubles. according to the newspaper “Vedomosti”, “Vologda butter” processes about 20% implemented in the area of raw milk, the annual production of 20 thousand tons of dairy products (milk, ryazhenka, cream, sour cream, kefir, yogurt, cottage cheese, etc.), about 2 tonnes of dry milk products and 2.5 tons of butter. The business is unprofitable in 2012, follows from the data of SPARK. According to documents HAPPY, for the first nine months of 2015 the company’s revenue amounted to 1.37 billion rubles, the net loss of 9.3 million rubles.

GLAD representatives and the Federal property management Agency refused to name the competitors “Aton Capital” — other companies that have entered bids for the auction. Sources of “Kommersant” called one of the interested parties group “Sum” Ziyavudin Magomedov. Tuesday, 16 February, the representative of the “Amount” denied this information.