Bloomberg News

Fridman’s Alfa Seeks VEB Financing to Acquire Domodedovo Airport

April 03, 2012

Russian billionaire Mikhail Fridman’s Alfa Group asked state-run development bank VEB, which is overseen by Prime Minister Vladimir Putin, for financing as it seeks to acquire Moscow’s Domodedovo Airport.

Alfa’s A1 investment arm applied to VEB for a loan to buy Domodedovo, Eastern Europe’s biggest airport, Andrey Kocherov, an A1 spokesman, said by phone, declining to elaborate. Ekaterina Grishkovets, a VEB spokeswoman, declined to comment.

VEB may provide A1 about $2 billion of the $3 billion needed for the purchase, Vedomosti said, citing an unidentified person with knowledge of the negotiations. A1 is also talking with VEB about a joint acquisition, the newspaper said.

Businessman Ziyavudin Magomedov’s Summa Group, which plans to borrow from state-run lender OAO Sberbank, is also willing to buy the airport for $3 billion, according to Vedomosti. Summa declined to comment when called by Bloomberg.

Goldman Sachs is advising Domodedovo’s owners on the sale, the newspaper said. Domodedovo Chairman Dmitry Kamenshchik, who was identified as the full beneficiary of Domodedovo Ltd. last year, has since declined to comment on the airport’s ownership.

To contact the reporter on this story: Ekaterina Shatalova in Moscow at eshatalova@bloomberg.net

To contact the editor responsible for this story: Mark Sweetman at msweetman@bloomberg.net


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