In December 2017 the EBRD exercised its put option and sold back its shares in Borets International, a leading global manufacturer of specialised electric pumps for oil extraction.
Following the purchase of shares in Borets International in 2013, the EBRD set a range of objectives, which have now been successfully realised over the last four years, a typical equity investment horizon for the Bank.
The achievements included: the design and implementation of a corporate governance action plan and the introduction of modern environmental procedures in line with the best industry practice. Borets International board of directors was also reinforced by the introduction of two experienced independent non-executive directors.
Frederic Lucenet, EBRD Director for Manufacturing and Services said: “We are very satisfied with the impact we made as shareholders in Borets. The company now is a benchmark in terms of corporate governance both in the industry and globally. While today’s decision signals the end of our equity project with the company, we’ll be open for cooperation opportunities with the company in the future.”
Christopher Mackenzie, Chairman of the Board of Directors of Borets International said: “Borets International’s relationship with the EBRD dates back to 2009 and, during the last eight years the EBRD has been a huge supporter of the company in providing financial support, in strengthening our corporate governance and in increasing Borets International’s credibility in the markets. The Board of Directors of Borets International joins me in expressing our deep gratitude to the EBRD for all its important support and advice over the last eight years. At the same time, we look forward to working with the EBRD in our international operations in the near future”.
The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 37 economies across three continents. The Bank is owned by 66 countries as well as the EU and the EIB.