Mubadala Acquires Stake in Russian Developer Etalon

Posted on 05/24/2021


On May 21, 2021, Mubadala Investment Company acquired 6.28% of shares in Etalon Group Plc, one of Russia’s largest and longest-established development and construction companies.

Mubadala Investment Company has notified Etalon Group about the acquisition of a 6.28% stake in Etalon Group, the equivalent of 24.1 million GDRs, crossing the 5% voting rights threshold.

Earlier, Etalon listed 88.5 million GDRs on London Stock Exchange and Moscow Stock Exchange, which accounts for 30% of the total registered capital of the company considering the additional issue.

Founded in 1987, Etalon Group focuses on middle class residential real estate in the Moscow and St. Petersburg metropolitan areas. Etalon Group has been listed on Moscow Stock Exchange since 2011. Global depositary receipts of the company started trading on Moscow Stock Exchange in February 2020. In 2019, Etalon Group acquired and consolidated 100% in Leader-Invest, one of Moscow’s largest residential developers by size of land bank and number of projects currently available for sale.

Rights Offering
On May 20, 2021, Capgrowth Investments Limited, one of the Etalon Group’s largest investors and a wholly owned subsidiary of Sistema PJSFC, purchased 22,632,806 newly issued Ordinary Shares at a price of US$ 1.70 per Ordinary Share in the rights offering previously announced by Etalon.

Sistema executed with JSC Alfa Bank a non-deliverable swap agreement with respect to GDRs dated May 13, 2021, in connection with which, on May 13, 2021, Alfa Bank purchased 64,143,016 newly issued GDRs at a price of USD 1.70 per GDR in the rump offering previously announced by Etalon.

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