About AO Svyazinvestneftekhim (SINEK)
SINEK is an investment company which is wholly-owned by the Republic of Tatarstan (the "Republic"). SINEK was founded and incorporated in the Republic on 11 April 2003 as an open joint stock company, with share capital of RUR 37,745 million (US $ 1.36 billion1). The Ministry of Land and Property Relations of the Republic acts as the sole shareholder of SINEK on behalf of the Republic.
SINEK was established to support investments in the Republic's economy pursuant to its Charter which authorizes SINEK to provide a range of management, marketing and other related services to a number of the Republic's strategic companies in which SINEK has a significant ownership through a unified holding company structure. Upon the formation of SINEK, the Republic transferred its shareholdings in 18 companies (whose businesses range from financial services to telecommunications, oil and gas, energy and petrochemicals) to SINEK through a contribution to its capital. SINEK currently holds interests in 24 portfolio companies (as of 31 December 2010).
The SINEK's primary objective is to act as a development corporation within the Republic in order to attract long-term investments into the Republic's economy to stimulate economic development.
SINEK is also supporting the development of a domestic mortgage market and such support includes providing financing to the Republic's mortgage lending agency which will permit the agency to increase the volume of mortgage loans available to individuals in the Republic.
On 16 September 2010, Russian Federal Financial Markets Service registered a report on the results of additional issue of shares of SINEK. The report indicated that SINEK's share capital increased by 16,157.2 million Roubles through the issuance of 161,572 new ordinary shares with a par value of 100,000 Roubles per share. Giving effect to such increase, SINEK's share capital increased to 54,265.9 million Roubles ($1.78 billion2). SINEK utilized the new shares to primarily acquire the remaining 25% of Tatenergo which it did not own from the Ministry of Land and Property as well as some additional assets.
Total assets as of 31 December 2010 were approx U.S. $ 7.5 bn.3
1 RUR/U.S.$ exchange rate at 27.75
2 RUR/U.S. $ exchange rate at 30.49
3 RUR/U.S. $ exchange rate at 31.48