Swiss Sulzer bought its shares from “Renova” to get out of the sanctions

Sulzer
Sulzer

Swiss Sulzer received the OFAC license and closed a deal with Renova, in which Viktor Vekselberg’s sanctioned group sold 5 million of its shares to Sulzer. This is reported by press service of both companies.

The share of Renova in the Swiss company fell below controlling stake and amounted to 48.83%. Before the deal it had a share of 63.42% in Sulzer.

“Sulzer confirms that the company is no longer subject to sanctions under U.S. law. The company can resume operations around the world in the normal mode,” Sulzer said in a statement. The company recognized that the sanctions have affected its activities, but is not afraid of their long-term impact on its performance.

In addition, the company will take measures to defrost assets that have been blocked in recent days, according to the Sulzer report.

Thus, Sulzer, which produces equipment for the oil industry, managed to get out of the sanctions before the deadline from the MSCI index provider. Earlier, MSCI promised that Sulzer shares will be removed from the MSCI Global Small Cap index, if as of April 16, the uncertainty regarding the sanctions against the company will remain.

Renova group signed a binding agreement to sell 5 million shares of Sulzer to the company itself (before the deal, Renova’s share was 63.42%) on 7 April. According to the agreements, Sulzer bought shares traded on the Swiss exchange from Renova at a weighted average price for the period from April 9 to April 13.

Then Sulzer pointed out that it will make payments to the Russian group only after it is convinced that these operations do not fall under us sanctions. The new message does not indicate whether the companies have made these calculations.

The US Treasury imposed new anti-Russian sanctions on April 6. The Swiss company promised to comment on the deal in detail at the same time as the quarterly results were published on April 19.

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