UPDATE 1-Baring Vostok sells EMC stake to cancer care group


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* EMC says ready for flotation when market right

* Baring Vostok say sale corresponded to ‘planning horizon’ (Updates with detail, context, possible IPO)

By Olga Popova and Alexander Marrow

MOSCOW, Feb 14 (Reuters) – Cancer care firm MedInvestGroup on Friday said it was buying Baring Vostok’s 27.78% stake in private medical company EMC from investment fund Baring Vostok, in a deal the companies said would improve treatment in Russia’s private health sector.

MedInvestGroup runs a network of medical centres for cancer diagnosis and treatment and will “bring the necessary expertise and vision for the next stage of EMC’s development,” Baring Vostok partner Konstantin Povstyanoy said.

The EMC investment had been one of Baring’s most successful, he said, but the companies did not disclose the value of the deal.

Private equity group Baring Vostok has invested more than $2.8 billion in projects in Russia and the former CIS countries and had been an EMC shareholder since 2012.

In February 2019, U.S. investor Michael Calvey and other executives at the group were detained on charges of embezzlement and placed under house arrest, which upset western investors who have complained for years about the lack of the rule of law in Russia. Calvey’s detention was extended on Monday to May 13.

All five Baring Vostok employees in detention deny wrongdoing.

Baring Vostok has continued making investments in the region and has said it remains committed to the long-term growth of other projects.

“The decision to sell corresponds to Baring Vostok’s investment planning horizon,” it said.

EMC’s CEO Andrey Yanovsky told Reuters on Friday that the firm was ready to conduct a stock market flotation and was just waiting for the right market conditions.

“The company is ready to do it at any moment, waiting for a promising market environment,” Yanovsky said.

In 2019, EMC generated revenue of 16 billion roubles ($252 million) and has earnings before interest, tax, depreciation and amortisation (EBITDA) of 6.1 billion roubles. Last year, more than 88,000 patients used EMC clinics.

Igor Shilov is the main shareholder of EMC with 68.75% of the company.

$1 = 63.4700 roubles
Reporting by Olga Popova and Alexander Marrow, Writing by
Alexander Marrow
Editing by Barbara Lewis


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