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Ziyavudin Magomedov accuses his employees of the raider seizure of FESCO.

Зиявудин Магомедов
  • Cases, Newsroom
  • September 29, 2020
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Ziyavudin Magomedov was arrested for organizing a criminal community in March of 2018. Currently, he has made an appeal to law enforcement officers to prevent the raider seizure of the Far Eastern Shipping Company, in which he owns shares in FESCO (32.5%). Oddly enough, but the “invaders” were people who were previously close to the body of the businessman, whom he himself employed to work. Leila Mammad Zadeh is the ex head of “Summa “and the chairman of the board of directors among them.

In a letter published on September 28, 2020 on the Baza Telegram channel, Magomedov expressed deep disappointment at the actions of his proxies on the board of directors and demanded that law enforcement agencies prevent an attempt to raid FESCO with the aim of destroying it. Victoria Tsilyurik, representing the interests of the arrested businessman, confirmed the existence of a letter, which, in her words, she sent to the “law enforcement agencies of Russia”

Letter from Ziyavudin Magomedov

The businessman claims that the actions of Mark Garber (23.8% of shares), ex-head of FESCO Alexander Isurin, Denis Kant Mandala, headed by the chairman of the board of directors of the company Leyla Mammad Zadeh, will disrupt the meeting of FESCO shareholders on September 30. Also, the powers of the current president of the company, Maxim Sakharov, and the appointment of Arkady Korostelev to this post were terminated ahead of schedule. Magomedov considers these manipulations to be assistance to external forces to carry out a raider seizure of his company. The letter emphasized that lawyers will take action to bring the participants in the raider seizure to justice, led by Mammed Zade, and pay compensation to the company’s shareholders.

Leila Mammad Zade’s position

She believes that she did everything as chairman of the FRESCO board of directors only to maintain the stability and integrity of the company entrusted to her. Leyla Rafaelovna also humanly understands Magomedov, who is in a difficult situation. He is under arrest, and is not reliably informed by his relatives about the state of affairs of the company. Mammad Zadeh states that all efforts are aimed at preserving the business, which has existed for 140 years. In turn, the press service of FESCO, regarding Magomedov’s letter, announced his desire to avoid an investigation into loan defaults.

In September, FESCO, through its subsidiary, filed claims with the London Arbitration Court against Magomedov’s firms. It is planned to collect debts from shareholders on loans issued in the 12th year for the acquisition of the group.

In addition to everything, in May there was information that Magomedov’s structures and the TPG GROUP investment fund (USA, 17.4% of FESCO shares) received a letter from FESCO on the urgent return of loans to her. The total amount is $ 1.046 billion. Thus, a corporate takeover of the company is initiated – the words of Shagav Gadzhiev, Magomedov’s nephew and a member of the FESCO Board of Directors. However, the interested parties were not named exactly.

At the beginning of the year, Mammad Zadeh noted the differences in approaches to the work of the company with Magomedov, therefore she was forced to leave her post. The management of the company will be carried out by relatives who have the full confidence of the businessman.

Who can become a new shareholder of FESCO

Mark Garber (23.8% of shares) and TPG GROUP (17.4%) are already discussing with potential buyers the terms of selling their shares in the group. And Magomedov’s actions only speed up this process. As one of the shareholders of a large railway operator said: Delo group (30% of shares belongs to Rosatom), headed by Sergei Shishkarev, is interested in buying shares, this is confirmed by a source close to the FESCO management. And Shishkarev himself stated in 2019 and the beginning of the 20th that he was interested in this asset, but after all corporate disputes in the company were resolved. Also, the representative of Rosatom denied speculation about the involvement of the state corporation in the processes around and in FESCO itself.

This whole story may indicate a possible interest from DP World (controlled by the UAE government structures). It is the world’s largest port operator, which has recently shown its willingness to invest up to $ 350 million in the port of Vladivostok, owned by the group, about which the Russian government was notified.

However, applicants for shares in the group have concerns that Magomedov will challenge the purchase deal. At the same time, after the buyout of shares from two shareholders at the same time (Mark Garber and TPG GROUP), a 41.2% stake is formed and Magomedov’s share goes for his debts to FESCO (from the source of the group). If the London court satisfies FESCO’s claim against Magomedov and it enters into force, it is technically possible for other shareholders to acquire shares

About Us

Our aim is to end the practice of individuals and organizations using dirty tricks and force to seize companies without compensation in Russia.

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