Online Advertising in Russia Overtakes Print for the First Time

 

Ad spending in Russia in 2011 exceeded the levels seen before the global financial crisis. More importantly, online ad sales topped those of print ads for the first time.

Advertisers in Russia spent US$8.8 billion in 2011, up 21% y/y 4% over the previous record in 2008, according to the Association of Communications Agencies of Russia. Online outperformed print for the first time, growing 56% y/y.  Spending on print rose 6% y/y.

TV remains the largest platform in the country in terms of spend, accounting for 50% of the total.

There are now 50.8 million Russians online.

source: rbth

23

02 2012

Commercial real estate investments in Russia double in 2011

Commercial real estate investment in Russia doubled y/y in 2011 to reach US$8.3 billion, a  new record.

Domestic investors accounted for 59% of the total amount invested, down from 70 to 80% in recent years.  Before the crisis foreign investors accounted for 70 to 80% of commercial real estate investments.

The largest deal of the year was Morgan Stanley’s December purchase of the 191,000 sq. m. Galleria shopping center in St. Petersburg for €840 million.

Retail accounted for 38% of the total, office 37% and hotel 13% primarily due to the sale of the Ritz-Carlton in Moscow. Industrial accounted for 3%, and mixed use projects were 9%.

Moscow continued to dominate with over 74% of all investments. St. Petersburg accounted for 22%.

 

 

14

02 2012

New Fund For Construction Of Data Centers

Alexander Samonov,  former co-owner of the supermarket chain “Kopeika” has announced that he is seeking investment and strategic partners for the creation of an investment fund for the construction of data centers in Russia.

Samonov has informed Kommersant that he will be investing $15 million personally and hopes to reach a total investments into the fund of $100 million.  They aim to secure an additional $100 million of debt financing.

They estimate they will be building around 6 data centers at planned financing levels.

22

05 2010

Elbrus Capital Announces Investment Plans

Elbrus Capital, the spin-off of Renaissance Private Equity,  has announced that it plans to make $180 million of private equity investments in Russian companies in 2010.

Investments will be made through a new direct investment fund at Elbrus, managed by Dmitry Kryukov, formerly of Renaissance Private Equity; Alexander Savin, former President of investment company A1; and  Robert Thielen, founder of Waterland Private Equity.

The Fund is looking for either significant minority stakes or controlling interest in growth oriented companies.

Elbrus Capital’s current portfolio includes: DST, the Russian Internet and social media company (Mail.ru, Odnoklassniki.ru, Vkontakte.ru) and Media One, a Russian television and radio company.

20

05 2010

Xenon Capital Partners New Hires

Stanislav Song and Hamid Gayibov, both of JP Morgan in Moscow have reportedly moved to Xenon Capital Partners, an M&A boutique set up last year to advise the Russian state on acquisition of domestic and foreign energy assets.

Song and Gayibov join Natalia Tsukanova, Kamil Burganov and Anton Voronin, who are all also former JP Morgan bankers.

Xenon reportedly has a mandate as investment manager for “the largest state-owned energy fund, and a range of M&A mandates for state-owned corporates in the energy sector.”

Source: Emergingmarkets.me

14

05 2010

Russian Navigation Technologies Considering IPO

Russian Navigational Technologies, one of the leaders of the Russian GLONASS/GPS Russian navigational system market is looking at the possibility of conducting an IPO on the MICEX in the innovation/growth sector this year.   A decision on preparation for IPO was made at the board of director’s meeting of RNT and supported by VTB Asset Management, which controls a majority of shares through its VTB Venture Fund.

Source: Unova

12

05 2010

TransCreditBank Launches TKB Capital Investment Bank

TransCreditBank, the bank of Russia’s monopoly rail transportation company Russian Railways, or RZD, is launching a full service investment bank to work in equity, debt, derivatives, corporate finance and m&a.

The new group will be called TKB Capital.

Read the rest of this entry →

17

04 2010

VTB Capital Names New Investment Strategy Head

VTB Capital has named Alexey Zabotkin as its new head of investment strategy.

Zabotkin will be transferring to the group from VTB Asset Management, where he had served as Chief Investment Officer and deputy CEO since September 2009.

Previously, he was CIO with United Capital Partners, a Russian private asset management company and in research at UFG.

[Via emergingmarkets.me]

17

04 2010

UFG Private Equity Acquires 15% of Enforta WiMax

UFG Private Equity Fund II has reportedly acquired 15% of Wi-Max operator Prestige-Internet, which provides services under the brand name Enforta.  The fund acquired the shares directly from Sumitomo Corporation, which had previously owned over 30% of the company.

Read the rest of this entry →

17

04 2010

Belarus Launching State Venture Fund

The Belarus government is preparing a project at the order of the president which will lead to the creation of a state venture company.  As proposed, the fund will initially be controlled by the State innovation fund.

“We studied several mechanisms for supporting venture financing at a state level”, said Anatoly Grishanovich.  ”It was decided, as an experiment, to transfer responsibility for this to the State Innovation Fund, as it has experience working with these kinds of projects.”

The fund would be similar in function to the Russian Venture Fund and the Belarussian government will be coordinating with its counterparts in Russia and Kazakhstan in setting up and operating the new fund.

The first Belarussian Venture Fair will be held in Minsk in November at which the activities of the new fund will be spelled out in detail and introduced to the public.

[Via Unova]

17

04 2010

China’s Tencent Invests $300 Million For 10% of DST

Tencent Holdings Limited, owner of China’s largest instant messaging platform Tencent QQ, has invested $300 million in exchange for 10.26% of Russia’s Digital Sky Technologies (DST), owner of mail.ru and social network vkontakte.ru.  This investment values DST at $3 billion.

Read the rest of this entry →

14

04 2010

RosNano Invests In DViN Detection Systems

RosNano has announced it will invest 155 million rubles ($5.34 million) in a project to develop tagged neutron detection systems for explosives and narcotic substances to be used in airport and facility security screening as well as portable systems for inspection of vehicles and cargo containers.

Read the rest of this entry →

14

04 2010

Natalie Tours Acquires 25% Of Tourix Holidays

The president of Natalie Tours, Vladimir Vorobjev, has announced that his company has purchased 25% of the shares of OOO Tourix Holidays.

Natalie Tours is one of Russia’s largest providers of package tours to popular international vacation destinations.  Tourix is a Western-style travel reservation portal in the model of Expedia or Orbitz.  It offers package tours, but also offers separate flight reservations, hotel, car rental and insurance.

Read the rest of this entry →

13

04 2010

VTB Invests $4 Million In Bentus Labs

VTB’s Moscow Regional Venture Fund II has invested $4 milion for a 30% stake in Bentus Laboratories, the producer of the Sanitelle brand of hand sanitizers RBC Daily. The investment will be used to expand production of Sanitelle products and for marketing purposes.

The company was founded in 2003 and began production of Sanitelle in December 2004 from production facilities based in Moscow.  The company is the first Russian producer of hand sanitizer products similar to the Purell brand internationally.

Rye Man & Gor Securities consulted on the deal.

[Via Quintura via RBC Daily]

26

03 2010

DST and 1C Invest $5 Million In Nival Network

Yuri Millner’s Digital Sky Technology has reportedly invested $4 million for a minority stake in Nival Network, the online gaming division company of Nival Group.  The company focuses on the increasingly popular browser-based gaming and massively multiplayer segments.   Established in September, 2008, the company operates its own Russian online gaming and social networking portal, ZZima.com.  Its portfolio includes titles as MMORPGs Cabal Online, Dragonica, Shaiya: Light and Darkness, Conquer Online and Eudemons, multiplayer racer Level-R, browser-based strategy game Khan Wars, music title Super Star and RockFree.  Nival Network owns development studios in Moscow (Russia) and Minsk (Belarus).

As part of the investment agreement, Nival Network will issue $7 million in new shares and the entire company will be valued at $32 million.  DST is purchasing 12.5% of the company for $4 million and the ownership stake of existing shareholders will be reduced.  1C, investing $1 million in the second round will be reduced from 30% to 26.56% and Talco Global (controlled by Nival founder Orlovskiy), will invest an additional $2 million and will be reduced from 70% to 60.94% .

DST and 1C have not officially commented on the terms of the deal to date.

[Via Vedemosti]

26

03 2010