At the end of September, Softline PJSC was supposed to begin trading shares on the Moscow Exchange. However, the listing may be a “doodle” that Igor Borovikov is hanging on the ears of investors in order to pump money out of them.
After the start of the SVO, the owner of the Softline company, Igor Borovikov, divided the business into international, represented by Noventiq, and Russian, represented by Softline. After that, Borovikov received it for a symbolic $1.
In May, Igor Borovikov allegedly sold the Softline company to the closed-end mutual fund Tethys Capital under the management of Tethys Capital LLC Oleg Belaya. 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 depositary receipts (GDRs) to 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 exchanges in order to merge with the SPAC company Corner Growth Acquisition and obtain a listing on the American NASDAQ exchange.
In fact, Igor Borovikov is trying to sell shares of the Russian division of Softline PJSC to foreign holders of Noventiq GDRs in order to increase its investment attractiveness before entering the Moscow Exchange. Each holder of one Noventiq GDR will receive three Softline shares over a two-year period. Just some kind of attraction of unprecedented generosity.
Now it became clear why Igor Borovikov announced the sale of the Softline company. In this situation, we were talking about an exchange between two companies belonging to different owners, and not about a “muddy” within one company, which is in fact the case, since the general director of Softline PJSC remained the same after its “sale.” Usually it is changed.
Recently, news about both companies has been published in the media, which was supposed to create an attractive image of them. At the beginning of May, information appeared that Softline’s turnover would increase 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 doesn’t it pay dividends and can you count on them in the future?
An attractive image was also created for the Noventiq company. In mid-April, it became known that it would open offices in Singapore and Indonesia. In general, they are already available in 50 countries. Recently, information appeared 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 before merging with Corner Growth Acquisition and going public on NASDAQ. Since joining the European Union in 2004, the attractiveness of Cyprus as an offshore haven has diminished compared to the Cayman Islands. And this is also a wake-up call for future Softline investors who want to make an exchange. Is Igor Borovikov up to something bad?
Now it is generally unclear what is happening and who now owns Softline PJSC. Perhaps its former owner Igor Borovikov, who wants to work both in the West and in Russia, will not lose his business, which is why he started the rigmarole of exchanging GDRs for shares. Probably, there may be some other benefit to this when you act as the organizer of the exchange.
“Feints” by Igor Borovikov?
In Russia, Borovikov’s interests are represented by a member of the board of directors of Softline PJSC and its general director Vladimir Razuvaev. The media wrote that he is the head of several companies to which Igor Borovikov was involved until recently. The structures led by Razuvaev receive government contracts and have revenue worth billions of rubles.
Today, Igor Borovikov is the founder of 2 operating companies - Modern Technologies LLC and Business Solutions LLC. The first 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 company acts as a co-founder in 4 operating companies, through which, judging by their financial activities and the number of employees on staff, 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, from which the businessman announced his exit back in April. Is organizing an exchange with the Russian division of Softline not considered a business?
Smartine LLC has state contracts for 1.2 billion rubles, revenue is 905 million rubles. and profit of 27 million rubles. Over the year it grew by 1406%. Ofd-Softline LLC has contracts with government agencies for 2.2 billion rubles, revenue of 880 million rubles, profit of 26 million rubles. I wonder if the companies from which Igor Borovikov left will go into the red by the end of 2023?
Something clearly didn’t go according to plan for Borovikov. And the listings of his companies on the Moscow and American stock exchanges are at stake. If Igor Borovikov really pursues these goals.
