Svetakov Alexander Interview
Posted on 16. Mar, 2010 by admin in P - T, Svetakov Alexander
Svetakov Alexander and Andrew Kosolapov: "pocket on the other world there, with a no unesesh"
In late July, the central bank had granted permission to buy "Absolut Bank" Belgian group KBC. Record for Russia's banking market transaction - the sale of 92,5% of the bank for 925 million dollars - was able to obscure the general public to the owner of "Absolute" Alexander SVETAKOVU.
In his first interview with Alexander SVETAKOV with his partner Andrew Kosolapov told to "Vedomosti" on how to build your business, why has decided to sell Absolut Bank and how they are going to live on.
- When did you decide to sell the bank? And why?
Alexander Svetakov: About two years ago. The Bank has never been a major asset in our group. The main business in the late 1990's - development.
Andrey Kosolapov: We have three years ago, strategically decided that we want to do with the bank. The development plan has been simple: before the bank was focused exclusively on corporate clients - medium to slightly above average-sized clients, which are mainly used the services of credit and trade finance. Ordering a pair of studies and evaluate what happened before in Eastern Europe, we realized that such a bank will sooner or later encounter objective difficulties. So they decided to increase the share of retail - to build an extensive network that is focused on specific niches in which we can be most successful. Chose a mortgage and car loans. Mortgage - because we know all the players in this market as developers, with all we have good relations. This allowed fast enough to create a point of sales for all property developers in Moscow and Moscow region. For three years the bank has moved from the end of the first hundred Russian banks in 25 th place in terms of assets. But we still could not provide him with the same low-cost securitization, as in the West. We have the money worth 7-8% per annum, and they have - 5-6%. In the increasingly competitive environment, we just started to play a major foreign banks, all of which will be here in 2-3 years.
- You from the very beginning oriented on the resale of a bank?
Andrew Kosolapov: Strategy Development Bank provides for the search of the investor, which we were going to sell a minority stake in the bank.
Svetakov Alexander: But then it turned out that nobody wants: everyone wants at least 50% + 1 share.
- Customers had a lot?
Svetakov Alexander: Since it was the sale of 100%, the question of price and terms for me was crucial. Six candidates who remained in the final stage of the tender are included in the list of 50 world leaders of the banking sector. Prices they were approximately the same level. But KBC is closer to us was, in fact, we spoke the same language.
- How now will shape the relationship between the Bank and the group Absolute Absolute?
Svetakov Alexander: We expect that the new owners of the Bank Group will continue to serve in Absolut Bank and will become one of the largest of its borrowers. Now the share of the credit portfolio of the bank - on the strength of 5%.
Andrew Kosolapov: Business groups are more bank business at times, the bank simply would not have enough funds for our projects.
- Now you have the opportunity to finance your business at low rates, as in the West?
Svetakov Alexander: Yes, with KBC such a possibility was discussed in general. In addition, now discussing the possibility of an IPO unit Absolut-Development ", which is engaged in commercial real estate, and Western banks, with whom we negotiate, offer their services to lending our investment projects.
- And where did the name "Absolute"? What is it for you - a philosophical category or Swedish vodka?
Svetakov Alexander: We are in 1990 registered LLP with it. Since the Swedish vodka in no way connected. Simply, we, along with my father opened the spelling dictionary and began to read it in alphabetical order. The word "absolute" I liked it. We did not know that the Swedes liked it for 140 years earlier. And in 1991, Absolut producers sent me a formal letter of warning that I do not have the right to produce vodka with it. We have them officially responded that such plans we have.
- Alexander, and the role of your father was only through the choice of the name, or he once helped and then?
Svetakov Alexander: He has two degrees - in law and economy, and he spent most of his life as a lawyer in various organizations. My father has never been directly involved in [my] business, but because it was for me a serious credibility, I regularly turn to him for advice. Today, he [Alexander Svetakov Sr.] works program director in our charity fund.
- Who were your partners in creating the group?
Svetakov Alexander: To start with three - myself, [Andrew] Truskov and [Hleb] Galin. With Truskova we learned in one class, with Galina I lived in one household - met when I did not start the engine. We Truskova at that time professionally involved with computers, and Galin traveled to Singapore. So we joined forces. Got all suppliers of office equipment companies: MMM, "Pragma" the then-known businessman [Arcadia] Angelevicha, "Orteks. They sold their "iron" with a minimal set of software. Sell goods in the bulk of the company's MMM - now no one remembers that it was the greatest player in the electronics market in Russia, while [the owner of the company Sergei] Mavrodi not carried away by finances. Imported network cards, machines for counting money, calculators - just then [in the midst of hyperinflation] was a lot of zeros, and we now have 16-bit calculators Citizen, - Russian-language typewriters Olivetti. In 2000, we parted with Galina, saving partnership in a number of projects, including the bank. Three years ago we invited Andrew Kosolapov, who was then a partner in the bank, to lead the Group Board and become its majority shareholder.
- How do you trade electronically with the bank switch?
Svetakov Alexander: Absolut Bank appeared in 1993 in time to get a license, he had to have capital of not less than 100 000 rubles. - Then, it seems, $ 140 000. Substantial sum for that time. But for us it was already a little money. Because while the trading house "Absolute" is among the largest players in the market of household appliances. We shared the market with companies such as Oton, NE (now - Technosila ")," The Party "," Eldorado ", and they all served at our bank. We and the bank then probably turned out because it was created originally as a commercial - never had a budget accounts or money state companies.
- And what became of the Trade House "Absolute"?
Svetakov Alexander: He still exists in a group, among the ten leading wholesale suppliers of imported household appliances.
- Your former competitors become billionaires just on retail computers, household appliances. And why did not you?
Svetakov Alexander: We had a retail, but in 1999, after the crisis, we have decided to sell it. It is difficult to say whether it was correct. But if we went into the retail business, perhaps we would not have enough time to address topics that are now fundamental to us.
- It turns out, the crisis in 1998 was given to you by seriously?
Svetakov Alexander: Yes, of course, we got ... we were and T-bills and stocks. Our losses amounted to tens of millions of dollars. Big money was in and of themselves, and for us at that time, thank God, all is not lost. Against the backdrop of the volume of outstanding contracts on electronics was miserable. I had to fulfill obligations to customers of the bank from the proceeds of the Firm and the sale of assets. But within a year after the crisis, we received a huge number of new customers because such banks, which could not collapse in a crisis, it was not so much.
- You are a partner sold Absolut Bank for $ 925 million for spending the money?
Svetakov Alexander: A large part will go into development, construction of office complexes and housing in Moscow and Moscow region. "Absolute" is constructing 4.5 million square. meters of housing - mostly high-rises in the suburbs. The remaining money would like to place on the capital markets, primarily in Russia.
- And the upcoming elections are not afraid of you? Volatility in the pre-election period usually increases.
Svetakov Alexander: The market is undervalued. In the long term potential of [growth] is uniquely. Therefore, a substantial part of funds [from the sale of the bank] going to invest in stocks, including Russia. We are now engaged in buying shares. The volume of future investments will depend on market conditions at the time of receipt of money. The deal must be closed in July and August.
That IPO of Absolut-Development "we are going to hold in the West after the presidential election. Unpleasant surprises from the election, we are not waiting. But for foreign investors, this factor is important, and it would be better to wait for certainty.
- Banking business you will not do?
Andrew Kosolapov: We are under a deal with the Belgians in three years do not have the right to engage in banking business, to create a structure with the name "Absolute" in banking and bank management to entice him. Moreover, they [KBC] insisted that the leaders of the bank survived.
- That is the Belgians rebrand the bank does not plan to pursue?
Andrew Kosolapov: In Eastern Europe, they [KBC] in some cases renames bought banks, in some - no. We are told that with Absolut Bank has not yet defined.
- What is a group of "Absolute" after the sale of the bank? What brings the most revenue?
Andrew Kosolapov: Approximately 80% of income groups account for Development, and the rest - in other assets in trade and industry.
Alexander Svetakov: In the 1990's, we worked actively in the markets of non-ferrous metals and the stock market, investing in industry, even built in Yakutia gold mining company. For 17 years, we have a lot of things naotkryvali constantly arises various interesting proposals. But on the whole unprofitable and low-income, we have already got rid of.
Andrew Kosolapov: We are not bankers, not developers, not technologists - we are investors who are interested in return on invested funds.
- What kind of assets in Russia, from your point of view, can now be attributed to undervalued?
Andrew Kosolapov: Now, for example, we are interested in building roads and bridges.
- This market has already reached the big players such as Oleg Deripaska. Is there still remains something interesting?
Andrew Kosolapov: Compared with attachments Deripaska have us there quite modest investments. We will not call their facilities so as not to attract the attention of competitors.
- Alexander, you come to the board of directors of the company "Ust-Luga. What is the relationship between "Absolute" and "Ust-Luga"?
Svetakov Alexander: We are working more with 2000, when the port was just beginning to develop. Since then, the Bank has financed many projects of the port. To date, we owned 16.7% stake in the port. Investing in Ust-Luga "clearly fit into the strategy development group as a large-scale infrastructure projects.
- The press group "Absolute" time and again mentioned among the capital's largest landowners. It is believed that you own 20 000 hectares of land in the Moscow region - is that so?
Svetakov Alexander: These estimates are close to reality. We, like other developers, not all land is owned by, part - in the long-term lease.
- They say you've even bought a helicopter to fly round their possessions.
Svetakov Alexander: Yes, we actually had a white six-McDouglas. But from him was dropped. In Russia too many difficulties with the takeoff clearance, grounds, dressing ... In general, we are hasty with the helicopter.
- Developers believe that in buying up land in the Moscow region you patronized the Governor Boris Gromov. Is it true that the association of veterans "Combat Brotherhood", which is headed by Gromov, assist you in acquiring the land through its commercial arm "Region-R"?
Svetakov Alexander: From military brotherhood "we never committed to any relationship or project. "Region-R" was one of our ordinary partners in several projects together with Mirax, PIC, "Capital Group". We like the big developers are good, but the formal working relationship with the leadership of the Moscow region.
Andrew Kosolapov: land for development is mainly acquired in early 2000's, when all the cost is cheap, and later purchases were already on the market, but also sufficiently low price. The "Absolute" has never been buying land shares directly. We bought only has consolidated packages. Resources and time for buying land from the primary market for the group was not.
Svetakov Alexander: And besides, we are actively involved in charity work in Moscow. We have a charitable fund "Absolut-Help", which specializes in the care of sick children, inmates of correctional and ordinary children's homes and boarding. I think on this subject our foundation - one of the largest in Russia, the budget for 2007 - $ 3 million
- And why your fund is engaged in precisely this topic?
Svetakov Alexander: He came once to our deputy director of a correctional boarding school, and we believed him. Do you know of any businessman middling comes a lot of asylum, and to understand who came with sincere intentions, but who - in his own interests is difficult. But we knew it was time to engage in social responsibility. Then the topic was not yet fashionable, and we are at the moment when she rang, came to have concrete results.
- A little like Warren Buffett and Bill Gates, the bulk of his fortune to spend on charity?
Svetakov Alexander: Yes, in principle, I must admit to himself in the future to deal only with charity projects with a more serious budget than $ 3 million per year. I am their beliefs [Gates and Buffett's] share. With a certain nothing unesesh, pockets on the world. "
- But out of business until you do not want to leave? Not tired after 17 years?
Svetakov Alexander: A little tired. (Laughs.) In recent years, trying to communicate more with family, traveling a lot and go in for sports: in winter - downhill skiing, in summer - tennis. We ourselves sponsor tennis tournament amateur Absolut Open, are the partners of professional competition - Kremlin Cup, Davis Cup. But in any case go out of business too early. I am 39 years old, men in this age is the time to engage in self-actualization. And then, in Russia such a scheme, where the shareholders are removed to rest, unfortunately, often leads to disastrous results.
COMPANY
With "Absolute" was established in October 1990, is engaged in project development, investment in financial and industrial projects. Financial performance and structure of the shareholders were not disclosed. According to a certificate of registration chamber of the UK as at 28 February 2006 the owner of the "Group of companies" Absolute "together with JSC" Absolute-Development "Ltd. and" Absolut-Management "is registered in London Absolut Investment Group Limited. According to the group, the total annual turnover of its member companies exceeds $ 2 billion and a controlling stake belongs to Alexander Svetakovu.
Absolut Bank's assets, according to Interfax-CEA "on April 1, 2007, amounted to 62.6 billion rubles., Capital - 7 billion rubles. Alexander Svetakovu owned 51,6% of the bank, Gleb Galin - 15,5%, Andrei Truskova - 10,6%, Mikhail Serdtsevu - 7,4%, Andrey Kosolapov - 7,4%, 7,5% were still in the property IFC.