Central Asia Partnerships
– Where the center of trade once was is now the new frontier
What we do
1. Investments
We invest our capital and help raise more.
Our investment and transaction experience enables us to make rewarding partnerships with founders and investors across the region.
2. Mergers & Acquisitions
If you require a partner with deep industry expertise or access to markets, we can help find one.
We advise boards and management teams on their most important decisions:
acquisitions and partnerships
3. Ownership
We help owners implement Private Equity approach, acting as active owner, providing outside-in view, and continuously challenging management from owner perspective.
4. Exit & Divest
We organize tailored sale processes, ranging from full auctions to discreet bilateral negotiations.
Maximizing sale price and successful completion are the cornerstones of our approach.
Our Principles
Integrity
We value your trust and promise the highest standard of integrity and confidentiality.
Quality
We will ensure high quality in every aspect of our work.
Partnership
We foster a culture of partnership, passion and hard work.
Focus on Results
Our rewards are aligned with your success. We earn when you earn.
About Us
We are investment professionals with track record in the region who can help realize your business aspirations.
Members of our team have backgrounds in private equity, investment banking, and transaction advisory.
We acted as principals and understand what is important to business owners.
Case Studies
About the company
RG Gold is a gold mining company in Kazakhstan operating two open pits at Novodneprovsky block north of Nur-Sultan. In 2013, Verny Capital acquired 100% interest in the company, at that time a small heap leach producer with reserves of one million ounce of gold and promising potential of new findings. Transaction was in line with Verny’s private equity approach – develop the company through active ownership and take it to market.
During the next five years, the company invested heavily in heap leach operations, ramping up production from c.20 kozpa of gold in 2014 to c.50 kozpa in 2018. It has accomplished an extensive drilling program and completed an evaluation of JORC compliant reserves and resources, which have tripled to 3.2 million and 6 million ounce, respectively. In 2019, the company completed the feasibility study to increase production to c.200 kozpa of gold.
About the transaction
On January 15, 2019, Verny announced the sale of 35% interest in RG Gold to Resource Capital Fund VII L.P., a large US private equity fund with a focus on the mining industry. This transaction marks an important milestone in the development of RG Gold. Involvement of RCF will help access capital and know-how in establishing a low-cost mining operation with the highest returns. Entry of RCF was preceded by two years of an active search for potential partners and negotiations with several contenders. Lengthy negotiations and extensive sets of agreements culminated in a mutually beneficial cooperation.
Key considerations
- RCF selecting RG Gold among other investment opportunities signals to the market the company has a viable business model;
- Transaction would not have been possible without bringing the company up to the high standard;
- By selling a significant minority stake through a cash out transaction, Verny secured its downside risk and redistributed pro-rata completion risk to a professional player;
- Competitive nature of the sale process ensured Verny was able to achieve its targeted return on capital;
- By retaining majority stake, Verny is poised to benefit from significant upside once CIP plant is up and running.
About the company
JSC Preobrazhenskneft (“PN”) is an independent oil company in the Orenburg region of Russia, producing oil from Kolganskoye field. In 2007, Verny Capital acquired it with an objective to find additional oil, streamline operations, and increase production. Within the next five years, production was doubled. The company reported an increase in sales and ebitda, 2P reserves improved to over 56 mmbbl. Verny was ready to exit and in 2013 launched the sale process.
About the transaction
On March 21, 2014, Verny announced sale of 100% interest in the company to RussNeft, at that time a fast-growing player building vertically integrated business through acquisitions. In addition to PN, RussNeft acquired Oilgastet paying for two assets over $200 million.
Key considerations
- Competitive process involved several bidders which at the end narrowed down to two best offers;
- Transaction was closing in the midst of Crimea crisis, both contenders having deep roots in the region helped fast-track the sale;
- Timing of exit coincided with expected supply glut due to shale oil and decelerating China. Oil price has never recovered to $100 since;
- By selling to a local player, Verny was able to sell the company “as is” with minimum reps and warranties.
About the company
Almaty International Airport was an continues to be the largest international airport in Kazakhstan with annual passenger traffic of some 3.5 million (04/2011) and substantial cargo operation. The Airport was fast approaching its full capacity and required new investments. Shareholders decided to sell it to a new owner who would be willing to commit substantial expansion capital.
About the transaction
In April 2011, SAT Infosystems and Meridian Capital announced sale of their 100% shares in the Airport to Venus Airport Investments B.V., for a total consideration of $86.7 million.
Key considerations
- Favorable macro environment and apparent upward trend in airport’s EBITDA;
- Airport attracted strong interest from different type of investors, including professional operators, private equity, airlines and their consortiums;
- The sale process involved multiple bidding rounds to narrow the number of bidders to a short list capable to execute the deal;
- At the end, the process turned into a price setting exercise helping existing shareholders agree on their internal transaction with a follow-on sale to an outside investor.
About the company
RBS, 83 percent owned by the UK government, was busy reversing a decade-long international expansion. A strategic plan unveiled by Chief Executive Stephen Hester in February 2009 aimed to cut costs and focus the Edinburgh-based bank on its core activities and markets. It named 16 countries it could exit, but said it would keep a corporate or investment banking presence in many markets.
Kazakhstan was one of the countries included in the list where RBS decided to divest its retail business and maintain corporate banking. Succession of the client base and retention of key staff were critical conditions to the buyer.
About the transaction
In June 2010, HSBC, through its wholly owned subsidiary SB “HSBC Bank Kazakhstan” JSC, has agreed to acquire the retail banking assets of RBS Kazakhstan, for a maximum consideration of US$52 million in cash. Under the terms of the agreement, HSBC acquired RBS Kazakhstan’s personal customer loan and credit card portfolios, together with four branches, 80 ATMs and two support offices.
Key considerations
- RBS’s high quality client base attracted the interest of more than five local banks who were actively pursing the lucrative retail segment.
- Selling to the bidder with the highest offer alone was not an option, as RBS would put at risk its corporate banking business.
- HSBC was the most logical buyer for many reasons, including its international brand and reputation, the low risk of losing client base and employees, and little overlap with their branch network.
- The biggest challenge was the post transaction stage which required effort on both sides to curve out the business and integrate it into the HSBC platform with minimum impact on client experience.
Contact Us
Central Asia Partnerships LLP
17 Zhanaru Street
Almaty, 050054
Kazakhstan
+7 777 2II I3 I0
[email protected]
