The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury has identified Viktor F. Vekselberg and Renova Group, Moscow, as specially designated nationals pursuant to US sanctions rules, effective April 6, 2018
Viktor F. Vekselberg indirectly holds an interest of 43.04 % in Oerlikon. Pursuant to the regulations of the OFAC of the US Department of the Treasury, Oerlikon is neither considered a sanctioned nor a blocked party because Mr. Vekselberg’s ownership interest in Oerlikon is less than 50 %. US persons and entities, as well as any other persons and entities, are therefore not restricted in their dealings with Oerlikon or in investing in Oerlikon.
Oerlikon engineers materials, equipment and surfaces and provides expert services to enable customers to have high-performance products and systems with extended lifespans. Drawing on its key technological competencies and strong financial foundation, the Group is sustaining mid-term growth by executing three strategic drivers: addressing attractive growth markets, securing structural growth, and expanding through targeted M&A. A leading global technology and engineering Group, Oerlikon operates its business in three Segments (Surface Solutions, Manmade Fibres and Drive Systems) and has a global footprint of around 15 000 employees at 186 locations in 37 countries. In 2017, Oerlikon generated CHF 2.8 billion in sales and invested CHF 107 million in R&D.
Sulzer acts differently and acquires five million Sulzer shares from Renova
Renova ownership below 50 %
Sulzer acknowledges that the U.S. Department of the Treasury’s Office of Foreign Assets Control has identified Mr. V. Vekselberg and Renova Group, Moscow, as specially designated nationals pursuant to US sanctions rules effective on April 6, 2018
The company has entered into a binding agreement with Renova on Sunday, April 8, 2018, to minimize disruptions to Sulzer’s business, whereby Renova transfers the ownership to Sulzer of five million Sulzer shares. After completion, Renova will be a 48.83% shareholder of Sulzer. All Renova representative Board members abstained from the decision on this related party transaction.
The share transfer is planned to occur in the course of this week. Sulzer will purchase the shares at the volume-weighted average share price of the Sulzer shares as quoted on the SIX Swiss Exchange for the period from April 9, 2018 to (and including) April 13, 2018. The purchase price agreed with Renova will be reduced correspondingly if Sulzer, at a later date, sells all or part of the shares from the transaction at a lower price.
Cash proceeds relating to the purchase of shares will be transmitted to the seller only when Sulzer has obtained legal confirmation that such transmission does not expose Sulzer to the risk of primary or secondary sanctions.
Sulzer is in close contact with authorities and believes that this transaction will assuage any concern as to the independence of Sulzer from the Renova Group.
However these measures were not protecting the Americans to freeze Sulzer assets in the U.S. thus leading to a devaluation of the stock exchange value of Sulzer. Of course, the last word might not have taken place, but no one is able to predict the next steps to defreeze the assets.