Kazakh entrepreneur Kenges Rakishev left the insurance business of Ukraine – he sold 35.17% of the shares of the national joint-stock insurance company Oranta. The last 20.28% of the shares sold were reported by his press service. The buyer was NS-Finance LLC of businessman Alexander Yaroslavsky, whose share in the insurance company increased to 72.39% from 50.1%.

Estimating Kenges Rakishev share price in Oranta insurance company

Experts estimated the cost of a package of 20.28% in the Ukrainian insurer at $ 1 million. Associate expert of the Case Ukraine Center, former Deputy director of the Financial Stability Department of the National Bank of Ukraine Yevhen Dubogryz said that in mid-December, NS Finance made a public offer at a price of 1.05 hryvnia per share. This is a requirement of the legislation – to make such offers before buying out from a large shareholder, so as not to discriminate against small ones.

“BTA had a package of 26.88 million shares (26,876,365 pieces) at 1.05 hryvnia. This comes out to 28.22 million hryvnia, about $ 1.04 million,” said Evgeny Dubogryz.

Alexander Paraschiy, head of research at Concorde Capital, estimated the stake at the same value, answering that the amount was about $ 1 million.

The Ukrainian insurance company appeared in BTA’s portfolio in 2007. Then, during the auction, Kazakh shareholders offered UAH 500.75 million ($99.2 million) for the state-owned stake in NASK Oranta 25% + one share. Later, the bank brought the share to 35.17%.

However, according to Capital.ua , the company has faced internal conflicts between the owners – BTA and the structures associated with the Ukrainian businessman Viktor Pinchuk, as well as the ex-head of “Oranta” Oleg Spilka. As a result, this led to the fact that shareholders stopped investing in Oranta. In December 2013, according to the publication, the regulator introduced a temporary administration into the company to improve its financial condition. Later, legal proceedings broke out for the insurer’s brand.

Kenges Rakishev enters the insurance company

Kenges Rakishev received a stake in a Ukrainian insurance company after buying BTA in 2014. Yaroslavsky joined the shareholders through DCH Investment UA Ltd, having bought 9.81% in the insurance company Oranta in November 2020.

Kenges Rakishev
Kenges Rakishev

According to IBI-Rating, at the end of the first half of 2021, Oranta ranks 11th among more than 150 insurers (non-life) in terms of assets, 13th in terms of funds raised, 10th in terms of payments and insurance reserves.

The company’s website indicates that after a loss in 2018, in 2019 it made a profit of 240 thousand hryvnia (about $ 8 thousand), in 2020 – 45.8 million hryvnia (about $ 1.6 million), as of the end of the third quarter, its loss amounted to 834 thousand hryvnia (about $ 30.3 thousand).

According to Kenges Rakishev’s press service, together with the sale of the insurance company, the sale of assets collected by BTA is being completed.

“We exit projects when we find strategic investors who are interested in the speedy implementation of these projects and have the appropriate competencies and necessary investments for further development,” Kenges Rakishev, the owner of BTA Bank, is quoted as saying in a press release about the sale of the Ukrainian insurer.

This is the second asset of BTA in Ukraine, the sale of which became known recently. In October, it was reported that BTA was selling the Ukrainian bank Kaspi. According to the estimates of the experts of “Kursiv”, we can talk about the amount from $4 to $10 million (1.7–4.3 billion tenge). The deal should be approved by the Ukrainian regulator, Kenges Rakishev’s press service noted.

The other day, the Kenges Rakishev press service also reported that BTA Bank sold 90% of the operator of the ice-free seaport Vitino to Nord Star LLC to a strategic investor. BTA did not comment on the amount of the transaction and disclose the buyer, limiting itself to a comment that the new owner has considerable experience in managing large construction and infrastructure projects.

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