Victor Pinchuk Finalizes Restructuring of the Interpipe Group
Victor Pinchuk, has completed the process of restructuring of Interpipe Group. As a result, tours to Baikal, that were previously part of the group are now governed as stand-alone businesses within a framework of an investment fund.
An international investment advisory group, EastOne (London), has been formed to support new investments and the existing asset portfolio. Its scope of activities includes development and execution of portfolio strategy, provision of industry expertise to the assets, and support in the areas of M&A, risk management, business planning and performance management.
Currently, EastOne oversees an asset portfolio in excess of $US 10 billion. The portfolio includes over 20 enterprises and large-scale projects such as Interpipe Pipe and Wheel Company, media assets (STB, Novy, ICTV, Facty newspaper) Ukrsotsbank, and a specialty steel producer Dneprospetsstal.
“Our objective is to create multiple investment platforms in sectors with the greatest risk-adjusted growth potential”, says CEO of EastOne Gennady Gazin. “Our strategy is three-fold: expansion of geographic footprint, sector diversification, and focus on strategic partnerships.”
According to Mr. Gazin, current portfolio approach calls for creation within a five-year timeframe a geographically balanced asset base with an eventual target of increasing non-Ukrainian part of the portfolio from ten to fifty percent. In addition, EastOne will diversify the portfolio by channeling investments into new, high-growth sectors. Most of the growth will be accomplished through strategic and financial partnerships.
In the context of the new strategy, in 2007 EastOne is planning to realize a number of large investment projects in the United States, Central and Eastern Europe, Ukraine and other CIS countries. The overall scale of planned M&A activity is likely to exceed 3 billion US$ by the year end. New projects will cover a diverse set of industries, including IT, real estate and financial services.
Prior to becoming CEO of EastOne, Gennady Gazin served as a CEO of Interpipe. Before joining Interpipe, Gennady Gazin was a managing partner of CIS office of McKinsey & Company, an international consulting firm.
EastOne will be headquartered in London, with offices in Kiev and Dnepropetrovsk.