In April 2020, following the arrival of external investors, VTB Group ceased to be the sole shareholder of Demetra-Holding LLC. The company managing infrastructure assets in the Russian grain export logistics market has become a joint venture in which VTB holds a 50.001% stake. This was announced to reporters by Dmitry Pyanov, Member of the Management Board of VTB Bank.
'In April, our Demetra-Holding attracted external investors. The accounting for this asset has been changed from consolidated to a joint venture measured at fair value', he said, commenting to reporters on VTB Group's H1 2020 International Financial Reporting Standards (IFRS) accounts.
In April 2020, VTB Group attracted strategic investors to the holding company, including Agronova JSC, a Russian company developing projects in agriculture in the Krasnodar Territory, and Marathon Group, a diversified investment company. Following the deal, Agronova JSC's stake in the company was 25% and Marathon Group's was 24.999%.
'We are developing business together with professional partners aiming to increase the competitiveness of Russian grain on international markets. VTB's experience of cooperation with our partners in other projects of the group creates good preconditions for a new stage of the holding company's business growth,' said Vitaly Sergeychuk, CEO of Demetra-Holding LLC, Senior Vice President of VTB.
In the IFRS financial statements for the first six months of 2020, VTB Group recorded disposal of the net assets of Demetra-Holding LLC and its subsidiaries (except for QSR Holdings LLC, which the Group continues to control) and recognised income from the disposal in the amount of RUB 2.9 bn. The remaining 50.001% share in Demetra-Holding LLC is recognised as an investment in a joint venture measured at fair value.