British property tycoon Anton Bilton loses £12m as he pulls out of Russia and delists from the LSE
Since Russia invaded Ukraine, sanctions have been put on Russia. Raven Property, which owns warehouses in cities like Moscow and St. Petersburg, said that these sanctions have “completely compromised” its business.
The firm, set up in 2005 by Anton Bilton, husband of American model and actress Lisa B, was among a handful of Russia-focused firms booted out of the FTSE indices earlier this week, dealing a blow to its reputation and depriving it of investment from tracker funds.
Did You Know?
FTSE (Financial Times Stock Exchange)- 100 Index, also called the FTSE 100 Index, is a share index of the 100 companies that are listed on the London Stock Exchange. These 100 companies are known to have the highest market capitalization.
Raven in Trouble
Matters worsened yesterday when Raven said sanctions made it ‘impracticable for the business to continue in its current form’.
It has drawn up plans to scrap its LSE listing and transfer its business to a Cyprus-based company controlled by its Russian management team.
The sale, which will be at a “nominal cost,” and the de-listing are expected to be backed by major shareholders, which include asset managers Quilter and Schroders.
What it means for Anton Bilton
Bilton, 57, who serves as the group’s executive deputy chairman, has also backed the plans alongside the rest of the company’s directors.
The plans mean Raven Property will effectively be left as a shell company, with any assessment of its value or that of its Russian business deemed to be ‘unfeasible’ unless sanctions were lifted.
The end of the company’s stock market listing follows a brutal period for its share price, which has plunged 88 percent so far this year.
Is Raven Property going bankrupt?
Austrian-based Raiffeisen Bank International, which makes a third of its profits in Russia, is considering leaving the country – just weeks after it vowed to stay.
The lender has 4.2 million customers and 9,400 employees in the country. A fortnight ago, its chief executive Johann Strobl told investors: ‘It’s very important that you understand, we are not walking away.’
Anton Bilton, a wealthy property developer from the United Kingdom, recently made the announcement that he will be withdrawing from the Russian market and delisting his company, Raven Property Group, from the London Stock Exchange (LSE). Because of this decision, Bilton is going to suffer a significant financial loss of twelve million pounds as a consequence of the move.
Information concerning Anton Bilton and the Raven Property Group
Anton Bilton is a well-known figure in the world of property development. Over the course of his career, he has amassed a fortune through a diverse range of business endeavors. Raven Russia, which would later become Raven Property Group, was established by him in the year 2005. The acquisition and development of commercial real estate in Russia is the primary focus of the company, and it places a particular emphasis on the development of warehouses.
Since 2006, Raven Property Group has been traded on the London Stock Exchange (LSE), but due to a recent decision made by Bilton, the company will no longer be included in the LSE’s index. The move comes after a difficult few years for the company, which has struggled with the impact of economic sanctions and a difficult business environment in Russia. The move comes after the company has struggled with these issues.
Why Mr. Anton Bilton is withdrawing from the Russian market
Anton Bilton has explained his decision to withdraw from Russia by pointing to a number of different reasons. One of the primary contributors is the country’s persistently unstable political and economic climate, which has made it significantly more challenging for businesses to continue their normal operations. In addition to this, Anton Bilton has voiced concerns about the lack of transparency in the Russian legal system, which has made it difficult for Raven Property Group to navigate the regulatory challenges that have been presented.
The fact that Raven Property Group will no longer be subject to the same level of scrutiny and oversight from investors and regulators as it was before it made the decision to delist from the LSE is another reason why the decision to delist from the LSE is significant. Investors may have a more difficult time getting a clear picture of the company’s financial performance and prospects as a result of this, despite the fact that it may provide Bilton with more leeway in terms of running the business.
What lies in store for Bilton and Raven Property Group in the years to come
Even though Bilton and Raven Property Group made the decision to exit the Russian market and delist from the London Stock Exchange (LSE), which may seem like a significant step backward, there are still opportunities for growth and success in other markets. According to statements made by Bilton, the company will place a primary emphasis on expanding its presence in Europe, particularly in the countries of Germany and the Netherlands.
Bilton has also given the impression that he is considering taking Raven Property Group private at some point in the not-too-distant future. This could give him more control over the direction the company is headed in, but it would also mean that he would need to find new sources of funding and support for the company in order to keep it operating.
In general, the choice that Anton Bilton and Raven Property Group made to withdraw from the Russian market and delist from the London Stock Exchange (LSE) is a courageous one. There is no question that there are risks involved; however, there is also the possibility of gaining access to new opportunities and expanding into new markets. The passage of time is the only factor that can reveal whether or not this choice will prove profitable for Bilton and his company.