Nikita Deynega explained to Novy Prospect the reasons for using the CEIF mechanism when changing the ownership of Priozersky lesokombinat

Priozersky Lesokombinat, a major regional player in the wooden house building market, has changed owners. According to the Contur.Focus service, AAA Capital Management LLC, which manages mutual investment funds, recently became the owner of Priozersky Lesokombinat GC LLC. Alexander Ozerov, the previous owner of the company, retained the post of general director. AAA Capital Management LLC also became the sole owner of PLC-Dom LLC, which is part of Priozersky Lesokombinat Group of Companies. Experts assume that the final owners of Priozersky Lesokombinat have not changed yet.

‘The former owners could both alienate the asset in favour of a CEIF, the shareholders of which can be any third party, and to structure the ownership of the asset with the use of CEIF – to transfer their previously owned shares in the charter capital of LLC “Priozersky Lesokombinat” in favour of CEIF in payment of the share contribution, becoming its shareholders’, – explained to the online edition of ‘Novy Prospect’ Partner, Head of Tax and Administrative Law Practice at Maxima Legal Nikita Deynega.

According to the expert, CEIFs were originally conceived as a mechanism for attracting collective investments. Accordingly, depending on the CEIF’s profile and its investment strategy, it can invest in a wide variety of assets, including shares of non-public companies.

‘Now we are increasingly seeing the trend of using CEIFs as a personal structuring mechanism. In this regard, any assets owned by shareholders are transferred to CEIF as assets,’ emphasised a Partner of Maxima Legal.

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