Rolf dealer's new owner bought company from state for around 30 bln to 40 bln rubles - CEO

SERPUKHOV. Nov 1 (Interfax) - The structure belonging to the new owner of the car dealer holding Rolf, businessman Umar Kremlev, acquired the group's assets from Rosimushchestvo at market value in the range of 30 billion to 40 billion rubles, Rolf CEO Roman Antonov told journalists.

Rolf's assets were placed under the temporary management of Rosimushchestvo at the end of 2023 in line with a decree issued by Russian President Vladimir Putin. Several years prior to this, in 2019, the dealer's top managers fell under criminal investigation, including its founder Sergei Petrov who had already left Russia for Austria by that time.

After the president's decree was issued, the Prosecutor General's Office filed a lawsuit with the St. Petersburg Court seeking to transfer the dealer to state ownership. The request was approved. In its decision, the court cited the fact that Petrov led the company while simultaneously being a member of the State Duma in 2007-2016 as the basis for its approval.

Antonov, who is Kremlev's business partner, took over as CEO of Rolf this summer. Kremlev became the holding's owner, and as "a new strategic investor will help the company maintain its unique corporate culture and expand the range of its activities, focusing on raising efficiency and attracting new partners and clients," the company said in a press release issued at the start of September.

Following this, a presidential decree was issued in September according to which Rolf was removed from Rosimushchestvo's control.

The deal to acquire Rolf from Rosimushchestvo was a financial one and its price was determined based on an appraisal conducted by the state entity, Antonov told journalists at the opening of Rolf's new dealer center in Serpukhov on Friday. "Yes, it was a financial deal, at market value. Rosimushchestvo conducted an appraisal according to which we acquired the company. The deal wasn't for free; we paid for it. In the range of 30 billion to 40 billion rubles, as the analysts said," Antonov said.

Kommersant's sources suggested approximately the same value for the deal this autumn. The dealer's business is typically valued at three times EBITDA, they said. Based on this multiplier and in view of the adjusted EBITDA in Rolf's 2023 report, the deal can be estimated at around 40 billion rubles. However, a market source indicated that, taking into account the dealer's debt, it could have been valued at 30 billion rubles.

Antonov also confirmed that Rolf's formal owner is now JSC Automobile Technologies, which was registered in May this year. The company is the sole owner of the holding's assets, a message Rolf published on the corporate disclosure website said.

Rolf is one of the largest car dealer holdings in Russia with a portfolio of more than 30 brands. The company has 20 dealerships and 78 showrooms in Moscow and St. Petersburg. The company's updated strategy assumes a geographical expansion into Russia's regions. In 2023, it sold 131,000 cars or a 31.4% rise, including 28,700 new cars and 102,300 used ones, up 13% and 37.8%, respectively. That year it became the largest player in the sector by turnover - its revenue to IFRS was 324 billion rubles or a 40% rise.