Igor Borovikov conceived an “exchange”?
At the end of September, Softline PJSC was supposed to start trading shares on the Moscow Exchange. However, the listing may be a “noodle” that Igor Borovikov hangs on the ears of investors in order to extort money from them.
After the start of the CBO, the owner of the Softline company, Igor Borovikov, divided the business into an international one, represented by Noventiq, and a Russian one, represented by Softline. After that, Borovikov received it for a symbolic $1.
In May, Igor Borovikov allegedly sold the Softline company to Tethys Capital closed-end investment fund managed by Oleg Belai’s Tethys Capital LLC. In fact, Borovikov sold Atalaya LLC, whose subsidiary was Softline PJSC. Today it became known that Atalaya LLC withdrew from the capital of Softline, but this has not yet been officially reported, and this is alarming.
Atalaya, which resembles an ordinary “dummy”, was supposed to offer global depository receipts (GDRs) of Noventiq to owners of Softline shares, after which it planned to enter the Moscow Exchange.
Noventiq announced in June that it was leaving the Moscow and London Stock Exchanges in order to merge with SPAC-company Corner Growth Acquisition and obtain a listing on the American NASDAQ exchange.
In fact, Igor Borovikov is trying to sell foreign holders of Noventiq GDRs shares in the Russian division of PJSC Softline in order to increase its investment attractiveness before entering the Moscow Exchange. Each Noventiq GDR holder will receive three Softline shares over two years. Just some kind of attraction of unprecedented generosity.
Now it became clear why Igor Borovikov announced the sale of Softline. In this situation, it was about an exchange between two companies owned by different owners, and not about a “mutnyak” within one company, which is actually the case, since the general director of Softline PJSC after its “sale” remained the same. Usually they change it.
Recently, the media has published news about both companies, which were supposed to create an attractive image of them. In early May, information appeared that Softline’s turnover would grow by 40%. At the end of May, it became known that the company would not pay dividends for 2022. This should alert new shareholders. If the company is doing well, then why does it not pay dividends and is it possible to count on them in the future?
An attractive image was also created for Noventiq. In mid-April, it became known that it would open offices in Singapore and Indonesia. In general, they already exist in 50 countries. The other day there was information that the company is expanding its business in India.
Two weeks ago, Noventiq Holdings plc changed jurisdiction from Cyprus to the Cayman Islands. This was done prior to merging with Corner Growth Acquisition and entering the NASDAQ. After joining the European Union in 2004, the attractiveness of Cyprus as an offshore paradise has declined compared to the Cayman Islands. And this is also a wake-up call for future Softline investors who want to make an exchange. Isn’t Igor Borovikov up to something bad?
Now it is not at all clear what is happening and who owns Softline PJSC. Perhaps its former owner, Igor Borovikov, who wants to work both in the West and not lose business in Russia, for which he started a rigmarole with the exchange of GDRs for shares. Probably, there may be some other benefit in this when you act as the organizer of the exchange.
“Tricks” by Igor Borovikov?
In Russia, Borovikov’s interests are represented by a member of the Board of Directors of PJSC Softline and its CEO Vladimir Razuvaev. The media wrote that he is the head of several companies, to which until recently Igor Borovikov was related. The structures led by Razuvaev receive state contracts and have revenues of billions of rubles.
To date, Igor Borovikov is the founder of 2 operating companies – Modern Technologies LLC and Business Solutions LLC. The first one has only 1 employee, but the founders are 5 individuals and RUBERY SYSTEMS CORP from the British Virgin Islands, who do not disclose their beneficiaries. The offshore is a co-founder in 4 operating companies, through which, judging by their financial activities and the number of employees in the state, money can be withdrawn.
In July-August, Igor Borovikov withdrew from the capital of 9 companies. Apparently, so that he would not be associated with Russian business, the exit from which the businessman announced back in April. Organization of an exchange with the Russian division of Softline is not considered a business?
Smartine LLC has state contracts for 1.2 billion rubles, revenue of 905 million rubles. and profit of 27 million rubles. For the year it grew by 1406%. Ofd-Softline LLC has contracts with government agencies for 2.2 billion rubles, revenue is 880 million rubles, profit is 26 million rubles. I wonder if the companies that Igor Borovikov left will go into the red at the end of 2023?
Something at Borovikov obviously did not go according to plan. And at stake are the listings of his companies on the Moscow and American stock exchanges. If Igor Borovikov really pursues these goals.
