In the spring of 2022, we valued another asset in the Omsk region, namely the valuation of shares JSC "Ommet". The company is engaged in wholesale and retail trade of metal products - the company buys various products from manufacturing plants (sheet metal, mouldings), and then sells metal at retail or in small wholesale through its metal depots in the Omsk region and a number of other regions.
The valuation was required for the compulsory purchase of shares from minority shareholders by the main controlling shareholder. Such share repurchase takes place in accordance with the provisions of Article 84.8 of the Federal Law "On Joint Stock Companies" and is controlled by the financial regulator - the Bank of Russia. In this regard, the valuation requires increased attention and responsibility from the contractor.
The entire share repurchase procedure must be completed on time. If the valuation is carried out poorly and a comment is received from the Central Bank, then it should be adjusted, and the approval process starts again. Thus, the deadline for the execution of the transaction may be significantly delayed. Realizing all the responsibility, we approached the project as thoroughly as possible.
JSC "Ommet" has production sites in the Omsk and Novosibirsk regions. The main production sites of the Omsk region are located in Omsk at 22 Party Congress and Semirechenskaya streets.
Our specialists together with regional partners (the company "E-Consulting" Sergey Ermakov) conducted an inspection of the main property of the enterprise and determined its market value. Based on this, the net asset value of the company's equity was calculated using the net asset method.
In addition, we have applied a income approach to valuation with forecasting of cash flows from the operating activities of the enterprise. At the same time, the results of the income approach showed the value not of the entire enterprise, but only of operating assets. Since the company had a sufficient number of non-operating assets, the value of which even exceeded the volume of the operating business, the results of the income approach were significantly adjusted for the value of non-operating assets, financial assets and cash, net debt.
The report was presented to the customer in printed and electronic form, signed by an EDS. The customer submitted the report to the Bank of Russia for verification, according to the results of which no comments were identified and submitted. Therefore, the company and shareholders were able to carry out all corporate procedures on schedule.
Financial consultants and valuers involved in such projects know how this is a unique situation when the Bank of Russia does not comment on the valuation of shares in a forced repurchase, but accepts it the first time. This was highly appreciated by the Client and his financial advisors.
We do not come to the implementation of valuation projects superficially, but always dig deeply into the specifics of the asset being valued, into the issues related to the intended use of the report, and into the planned transaction. Therefore, we are proud of this project, but for us this is not an exceptional situation, but the basic standard of our work. In all cases, we carry out valuation work using the optimal methodology and reliable information, and are also ready to defend the results obtained in all instances.