Senator Suleiman Kerimov's Nafta-Moskva holding has acquired 25.5 percent of the company building the Moskva hotel, Vedomosti has learned, which could breathe new life into the stalled project.
Nafta-Moskva acquired "50 percent of Konk Select Partners, which owns 51 percent of the shares of OAO Dekmos," said a source close to one of the hotel's owners. The seller was OEK-Finans, which is fully owned by the Moscow city government. A City Hall source confirmed that talks had been held, but he was unaware of a deal being reached.
Vedomosti was unable to contact representatives of OEK-Finans. But a source close to Kerimov confirmed the deal. Sources said the stake sold for about $100 million.
Until December 2008, 51 percent of Dekmos belonged to ZAO Dekorum, while 49 percent was held by City Hall. Deutsche Bank offered a loan of about $87.5 million to build the hotel, with Dekorum's stake serving as collateral. In the fall of 2008, Konk Select Partners was created to manage the debt, and Deutsche Bank transferred responsibility for the loan to that holding in exchange for half of the company. The other half remained with Dekorum.
But in late 2008, the bank demanded immediate repayment because of delays in the construction schedule. Deputy Mayor Vladimir Silkin said OEK-Finans repaid the loan so that control of the company would not go to Deutsche Bank, after which the company received 50 percent in Konk Select Partners.
Sources in City Hall and sources close to the hotel's management said State Duma Deputy Ashot Yegiazaryan is the ultimate owner of Dekorum. He has denied that, however, saying he is overseeing construction of the hotel as Moscow's deputy.
Yegiazaryan declined comment Sunday.
Kerimov's entry into the project could get construction of the Moskva back on track, said Mikhail Gets, managing director of Praedium Oncor International.
Kerimov has experience working with banks on raising capital, he said. For example, after becoming a shareholder in PIK, he was able to get refinancing for almost 14 billion rubles ($473 million) in loans from Sberbank, and he also reached agreements with other banks. Kerimov also knows how to sort out conflicts among shareholders, Gets said. The businessman served as a peace broker in a conflict between Guta Group and PIK regarding the Krasnopresnensky Sugar Factory.
Kerimov bought out both sides and then sold the consolidated holding to PIK.
Dekmos' shareholders had been fighting until very recently. Last summer, the Interior Ministry's Investigative Committee opened a criminal fraud case against unidentified individuals. According to the case materials, Dekorum chief executive Vitaly Gogokhia went through a Cypriot court to block OEK-Finans from naming directors to Konk. Later, Gogokhia was charged with fraud.
All sides now say the conflicts surrounding the Moskva have now been settled.
City Hall's 49 percent stake in Dekmos, along with its other hotel stakes, have been transferred to the United Hotel Company, or UHC. In early December, City Hall officials said 51 percent of UHC would be handed over to companies controlled by the U.S. billionaire Ronald Lauder. In exchange, he will need to raise about $1 billion to contribute to the holding's charter capital.
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