Sergei Bakeshin commented to Novy Prospect on Svetlana’s PJSC restructuring

Svetlana PJSC announced the establishment of a subsidiary, Svetlana Invest LLC, to which the company’s non-operational assets are planned to be transferred. According to Svetlana’s management, the restructuring of the holding will not affect the company’s operations, which will continue to operate in accordance with the previously approved plans.

Sergei Bakeshin, Counsel and Head of Dispute Resolution and Insolvency Practice at Maxima Legal, told the Novy Prospect online newspaper that spinning off non-core assets into a separate legal entity is a common business practice. The aim of such restructuring may be to reduce costs, increase capitalization and optimize the management system.

“The new company, in which non-core assets are assembled, may remain a part of the holding company or become an independent parallel business of the same shareholders. It can also be sold to an outside investor. In this case, since the shares of Svetlana PJSC are part of a mutual investment fund (ZPIF Combined Fifth Element), other legal schemes of disposing of the asset are possible,” the expert explained.

Sergei noted that in 2022 the shareholder of Svetlana PJSC carried out activities aimed at consolidation of a hundred percent stake. If these measures were not successful, reorganisation may help to transfer at least non-core assets to the new company, which will have no minority participants.

To read the full article (in Russian) please visit Novy Prospect website >>>