OREANDA-NEWS. EastOne CEO Gennadiy Gazin announced at the annual investor conference hosted by Alfa Bank and Alfa Capital Ukraine in Kyiv on September 27 that Interpipe Group, one of the largest Ukrainian industrial groups, has been restructured into EastOne LLC, an investment company and consultancy with a focus on private equity and corporate governance, Alfa-Bank's press-service reports.

Headquartered in London, EastOne’s primary objective is maximizing portfolio value rather than cash flow management. EastOne manages Interpipe’s portfolio of assets, including its pipe and wheel businesses, media assets, Dniprospetsstal and others, with an estimated value of $10 bln. EastOne will provide investment and advisory services for the development and realization of a portfolio strategy, M&A deals, risk management and new business development. EastOne aims to diversify its presence in the CIS, Europe and other regions, while simultaneously decreasing its presence in Ukraine from 90% to 50%.

According to Alfa-Bank experts, this new investment philosophy will help to expand Interpipe’s pipe business and Dniprospetsstal’s value, which may eventually lead to the company’s sale to a strategic owner.

Interpipe sets IPO date for spring 2008. The CEO of EastOne Gennadiy Gazin, who is also former chairman of Interpipe’s BoD, announced at the annual investor conference hosted by Alfa Bank and Alfa Capital Ukraine in Kyiv on September 27 that Interpipe will hold IPO on London Stock Exchange (LSE) in the spring of 2008. Gazin also confirmed that a public placement remains the company’s primary objective despite market speculation about merger with TMK. In understanding of analysts, a merger may be considered by Interpipe only after an IPO, when the company will achieve its true value.

Gazin also noted that Interpipe will go public as a single pipe and wheel business since they share both production stages and geographic salesmarkets. In addition, the wheel business is both high margin and counter cyclical, which should enhance the strength of the entire portfolio.