Trust & Investment Bank Consolidates Ilim Pulp's Assets...

The largest timber holding Ilim Pulp Enterprise announced a transition to consolidated shares. Trust & Investment Bank will be responsible for consolidating tens of companies included into the group.

Trust & Investment Bank helped Ilim Pulp Enterprise when the latter stood in urgent need for money to redeem its assets which RusAl shareholders were willing to acquire.

ZAO Ilim Pulp Enterprise was set up in 1992 by Ust-Ilim-based Timber Concern and Kotlass-based Pulp-and-Paper Mill. The Swiss company INTERTSEZ S.A. is the major shareholder of ZAO Ilim Pulp. Ilim Pulp Enterprise owns control blocks of shares of Kotlass-based Pulp-and-Paper Mill, Ust-Ilim-based Timber Plant, Bratskcomplexholding (Bratsk-based Timber-Processing Plant), St.Petersburg-based Cardboard and Printing Plant, AO Paper Mill Kommunar, 28 timber enterprises located in the Arkhangelsk and Irkutsk regions, and the Czech factory. Besides, Ilim Pulp has a stake in the ownership capital of Syktyvkar-based Timber-Processing Plant. The holding manufactures 40% of cellulose and cardboard produced in Russia, 65% of its products are exported.

In May 2000, the chairman of Ilim Pulp's board of directors Z.Smushkin said to Vedomosti that the holding planned to consolidate shares of member companies with the view of entering international stock markets. Trust & Investment Bank became the holding's financial consultant. According to the chair of the bank's board I. Yurov, the bank will be in charge of consolidating shares of companies included into Ilim Pulp Group. He informed that the bank helped Ilim Pulp obtain control over Ust-Ilim-based Timber-Processing Plant. A million-strong deal on buying shares of Ust-Ilim-based plant from RusAl's shareholders was completed last week. The head of Ilim Pulp press service S.Bychkov confirmed to Vedomosti that Trust & Investment Bank became the holding's consultant and added that it would take about a year to consolidate shares.

According to a managing director of Trust & Investment Bank's department for corporate finance D. Konov, the bank and Ilim Pulp signed a contract at the end of January. According to him, the bank attracted some financial investors (primarily Russian investors) to finance purchase of Ust-Ilim-based plant. D.Konov refused to inform about the amount of funds attracted by the bank, however, mentioned that their share in the deal was rather considerable.

According to a source close to the deal with Ust-Ilim-based plant, YUKOS participated in the deal and financed Ilim Pulp. However, the oil company did not confirm it.

S. Novolodskaya, Vedomosti