Kenes Rakishev way to the top: from 2013 to the present days

Kenes Rakishev, according to Forbes national rating, made an entrance to Top-50 businessman of Kazakhstan in 2013. Since then he climbed in Top-10, keeping his highly diversified empire under strict control. Here is Kenes Rakishev story – from 2013 to the present days.

2013

The year 2013 began for Kenes Rakishev with investments in robotics. And in 2012, the oilfield services JSC “KazPetroDrilling”, in which Kenes Rakishev owns 70%, was listed on KASE. The company receives more than 90% of its total revenue from the sale of KMG EP services.

Kenes Rakishev also has shares in JSC “SAT & Company” , Bank Astana-Finance and is the sole owner of IC Standard, LLP “VILED INTERNATIONAL”, LLP “VILED GROUP” and TOO “SAT Infosystems”.

JSC “SAT & Company”, which is controlled by Kenes Rakishev, announced in the financial report for 2012 its intention to sell ShalkiyaZinc by the end of 2013, but in 2013 changed its mind to do so. Between 2011 and 2012, at least $50 million was invested in ShalkiyaZinc, and in the summer of 2013, the company left the London Stock Exchange. In general, Kenes Rakishev is quite actively selling his Kazakh assets in the extractive sector – in 2012 he sold control in KazPetroDrilling JSC (the transaction amount is not disclosed) Yakov Tskhai’s Dostar Oil Service LLP and the subsidiary of SAT & Company JSC SATKomir JSC (to an individual whose name was not disclosed) for 752 million tenge, plus the buyer closes the Group’s debt in the amount of 3371 million tenge to BTA Bank.

Thus, the purchase of JSC “SATKomir” cost 4123 million tenge to an unknown investor. In addition to the controlling stake in JSC “SAT & Company”, Kenes Rakishev owns JSC “Bank Astana-Finance”, is a major shareholder of the insurance company STANDARD, a shareholder of Novatus Holding Pte Ltd, a director of Avanteguard Services Ltd.

2014

Kenes Rakishev, Chairman of the Board of Directors of the SAT & Company industrial Holding, also became Chairman of the Board of Directors of BTA Bank in 2014, after it was decided to buy it out from the state on a parity basis with Kazkommertsbank.

In addition, the businessman became a member of the Board of Directors of JSC “NC “Kazakhstan Engineering” – in accordance with the order of the Minister of Defense Adilbek Dzhaksybekov dated March 13, 2014.

In early July, Kenes Rakishev completed the acquisition of 46.5 % of the shares of BTA Bank from the National Welfare Fund “Samruk-Kazyna” (Kazkommertsbank bought the same share). The amount of the first tranche was $170 million. Shortly before that, the subsidiary of the National Welfare Fund “Tau-Ken Samruk” bought the company “Shalkiyatsink” owned by Rakishev for exactly the same amount, whose assets at the end of 2013 amounted to 3.7 billion tenge. The National Welfare Fund recently acquired it for 31 billion tenge. Kenes Rakishev is a member of YPO Kazakhstan.

2015

In March 2015, Kenes Rakishev became the owner of 16.02% of the shares of Kazkommertsbank JSC, and also joined the board of directors of the bank. He is also the chairman of the Board of Directors of the industrial holding SAT & Company, where he owns 51.85% of the shares.

Rakishev controls 30.29% of Bank of Astana JSC, as well as 24.5% of Standard Insurance Company JSC, 19.01% of Central Asia Metals Plc, 14.3% of Net Element (a company specializing in mobile payments and transaction services, whose shares are traded on NASDAQ), as well as a stake in Magnum Cash & Carry LLP (through SDB Group LLP).

Kenes Rakishev is a member of YPO Kazakhstan. Participant of the charity project “Mother’s House”.

Kenes Rakishev is the holder of 28.67% of shares and a member of the Board of Directors of Kazkommertsbank. He also owns 51.85% of the shares of SAT & Company Industrial Holding, 20.7% of Standard Insurance Company JSC, 30% of Magnum Cash&Carry LLP (through SDB Group LLP), 19.01% of Central Asia Metals Plc and 25.6% in Net Element (a company specializing in mobile payments and transaction services, whose shares are traded on NASDAQ).

The businessman is the chairman of the Board of Directors of SAT & Company, a member of the Board of Directors of JSC “NC “Kazakhstan Engineering”.

Rakishev is a member of YPO Kazakhstan, a participant of the charity project “Mother’s House”, the president of the Judo Federation of the Republic of Kazakhstan.

2016

Kenes Rakishev, Nurzhan Subkhanberdin (No. 6 of the rating) and Central Asian Investment Company JSC in April 2016 announced the conclusion of a preliminary agreement on the purchase by the first of a total of 29.26 % of the shares of Kazkommerbank JSC from two other participants in the transaction. Kenes Rakishev has owned 56.75% of the shares of Kazkommertsbank JSC directly and indirectly since last year. He holds the post of Chairman of the Board of Directors. The transaction can be completed before the end of the third quarter of 2016, provided that all necessary permits are obtained. If the purchase is approved, Rakishev’s share in the bank will increase to 86.01 %. He controls 76.01 % of the shares of the SAT & Company industrial Holding, one-fifth of Standard Insurance Company JSC, has a non-controlling stake in Magnum Cash&Carry LLP, 19.01% of Central Asia Metals Plc and a large stake in Net Element (a company specializing in mobile payments and transaction services, whose shares are traded on NASDAQ). Recently, the millionaire bought the TV channel 7 from Alexander Klebanov (No. 28 rating) and intends to buy out the remaining shares of Kazkommertsbank from Nurzhan Subkhanberdin and Nina Zhusupova in 2016.

2017

Kenes Rakishev directly and indirectly controls 71.31 % of the shares of Kazkommertsbank and is the chairman of its Board of Directors. He also owns the TV channel 7, a stake in Magnum Cash & Carry LLP, 77.72% of the SAT & Company industrial holding, 21% of Standard Insurance Company JSC, 19% of Central Asia Metals Plc and 18.3% of Net Element (a company specializing in mobile payments and transaction services, whose shares are traded on NASDAQ). The businessman is the chairman of the Board of Directors of SAT & Company and Net Element. Participant of YPO Kazakhstan, the project “Mother’s House”, President of the Judo Federation of the Republic of Kazakhstan.

In March 2017, Kazkommertsbank, in which Kenes Rakishev owns 71.31%, signed a memorandum of understanding with Halyk Bank regarding the potential acquisition by the latter of a controlling stake in KKB. Rakishev acquired KKB shares in 2015-2016.

In January 2016, the businessman invested an additional $910 thousand in Net Element, whose shares are listed on NASDAQ. In total, he financed Net Element for $34 million for the period from 2012 to 2016. Net Element’s share price declined from $85.6 to $0.84 per share during this period.

In 2016, Rakishev sold Vyacheslav Kim (No. 21 of this rating) 30% of Magnum Cash and Carry LLP, which he owned through SDB Group.

The businessman is a member of the YPO Kazakhstan (Young President Organization), a participant of the charity project “Mother’s House”, the president of the Judo Federation of the Republic of Kazakhstan.

Kenes Rakishev owns 77.72% of SAT & Company Industrial Holding, 21.03% of Standard Insurance Company JSC, 19.01% of Central Asia Metals Plc and 18.3% in NetElement, a company specializing in mobile payments and transaction services, whose shares are traded on NASDAQ.

The businessman is the chairman of the Board of Directors of SAT & Company and NetElement, a member of the Board of Directors of JSC NC Kazakhstan Engineering.

2018

In February 2018, Kenes Rakishev brought Fincraft Investment House JSC (formerly BTA Securities JSC) to KASE, in which he is the sole owner. In 2016, Fincraft acquired shares of the Norwegian energy company Araca Energy Asa on the international market, which were then depreciated with a loss of 971.1 million tenge. The businessman is the sole shareholder of BTA Bank (the banking license was terminated in 2015). In March 2018, Rakishev resigned from the board of directors of BTA Bank and is no longer engaged in the operational management of the financial institution.

In early 2018, Rakishev left Central Asia Metals Plc, in which he owned 6%, and bought 22.42% of the Petropavlovsk gold mining company. The businessman also owns 77.72% of SAT & Company Holding, 16.1% in Standard Insurance Company JSC and 18.3% in NetElement, specializing in mobile payments and transaction services, whose shares are traded on NASDAQ.

Kenes Rakishev is the sole shareholder of BTA Bank, whose banking license was terminated in 2015. In March 2018, the businessman resigned from the board of directors of BTA Bank and is no longer engaged in operational management, but focused on the return of the bank’s assets. The total amount of claims under the decisions of all courts was approximately $6 billion, as of May 2018, $1 billion was returned.

On June 21, 2018, the Supreme Court of Great Britain awarded Ilyas Khrapunov, the son of the former mayor of Almaty Viktor Khrapunov and the son-in-law of the ex-owner of BTA Mukhtar Ablyazov, to return the $500 million stolen from the bank On August 16, Ilyas Khrapunov was refused on the appeals filed and the court’s decision became final.

Kenes Rakishev is the sole owner of Fincraft Investment House JSC (former BTA Securities JSC), which owns shares of the Norwegian energy company Araca Energy Asa, the American PayPal Holding (electronic payment system). In addition, the businessman owns 22.42% of the Petropavlovsk gold mining company, 77.72% of the SAT & Company holding, 16.1% of Standard Insurance Company JSC and 18.3% of NetElement, specializing in mobile payments and transaction services, whose shares are traded on NASDAQ.

2019

Kenes Rakishev owns Fincraft Investment House JSC (former BTA Securities JSC), 77.72% of Fincraft Resources JSC (former SAT & Company), 22.42% of the Russian gold mining company Petropavlovsk, 16.1% of Standard Insurance Company JSC and 18.3% of NetElement fintech company, whose shares are traded on NASDAQ. In addition, the businessman owns 98.19% of BTA Bank JSC, which has not had a banking license since 2015, but owns banks of the same name in Kyrgyzstan, Belarus and Ukraine.

Kenes Rakishev owns Fincraft Investment House JSC (former BTA Securities JSC), 97.85% of Fincraft Resources JSC (former SAT & Company), through which he owns Aktau Bitumen LLP, Ertis Ferronickel Plant LLP, 18.3% of NetElement fintech company, whose shares are traded on NASDAQ.

In addition, the businessman owns 93.28% of BTA Bank JSC, which has not had a banking license since 2015, but owns banks of the same name in Belarus and Ukraine. In June 2019, BTA Bank JSC sold 93.21% of the shares of BTA Bank CJSC in Kyrgyzstan.

In July 2019, Rakishev sold 22.5% of the Russian gold mining company Petropavlovsk to the co-owner of Novaport, Roman Trotsenko (No. 59 of the top 200 richest businessmen in Russia according to Forbes).

Member of the Presidium of the NCE RK “Atameken”, Chairman of the Presidium of the Association of Young Entrepreneurs of Kazakhstan, member of YPO Kazakhstan.

2020

Kenes Rakishev owns 50% of Fincraft Investment House JSC (former BTA Securities JSC), 95.85% of Fincraft Resources JSC (former SAT & Company), 100% of Fincraft Group LLP (former Novacom Corporation LLP), a stake in Standard Insurance Company JSC and 18.3% of NetElement fintech company, whose shares are traded on Nasdaq.

Previously, the businessman owned 98.19% of BTA Bank JSC. Since 2015, BTA Bank has not had a banking license, but owned banks of the same name in Kyrgyzstan, Belarus and Ukraine. In 2019, 93.21% of BTA Bank CJSC in Kyrgyzstan was sold and a subsidiary of BTA Moscow LLC was registered. In June 2020, 29% of BTA Bank JSC was transferred to Fincraft Group LLP as a contribution to the authorized capital, and 68.79% was transferred to trust management without transfer of ownership rights.

2021

In March 2020, BTA Bank JSC, Vitino Management Company LLC and White Sea Complex B. V. signed an agreement on mutual termination of obligations. According to it, BTA Bank received movable and immovable property of the Vitino oil port in the Murmansk region of the Russian Federation for 298 million rubles (about $4 million). White Sea Complex B. V, according to the Arbitration Court of the Murmansk Region, was affiliated with Mukhtar Ablyazov in 2015.

In June, JSC “BTA Bank” bought 90% in the Russian company “Nord Star”. The company is based in the Murmansk Region and owns 49% in Vitino Specialized Sea Port LLC. The remaining 51% belongs to the Russian Sayan Dorzhiev through LLC “UK ” Vitino”. Russian media reported that Nord Star is ready to invest 2.9 billion rubles (approximately $38.3 million) in the restart of the Vitino seaport. The terminal has not carried out transshipment since 2014. The reconstruction is planned to be completed in 2022.

According to the financial statements for 2019 published at the end of September, BTA Bank sold 28 plots of land in Kazakhstan to the Almaty construction LLP “Nur City Investment”, owned by Dmitry Li and Nadezhda Artykbaeva, for 76 billion tenge. Payment must be made in part in cash, as well as residential and non-residential premises by June 2029.

Kenes Rakishev owns 50% of Fincraft Investment House JSC (former BTA Securities JSC), through which he owns the Amanat insurance company, 95.85% of Fincraft Resources JSC (former SAT & Company), 100% of Fincraft Group LLP (former Novacom Corporation LLP), which manages BTA Bank. The structure of the latter group includes 23 companies in Kazakhstan, Russia, Belarus, Romania, Ukraine, Singapore, the United States, the Isle of Man and Cyprus. In Romania, the group owns 100% of the gold mining companies Romaltyn Mining S. R. L. and Romaltyn Exploration S. R. L. It also has a stake in the fintech company NetElement. Last year, together with his wife Asel Tasmagambetova, the businessman launched a private school “Shokan Ualikhanov atyndagi mektep” in Almaty.

Rakishev is the Chairman of the Board of Directors of Fincraft Resources JSC, Chairman of the Presidium of the Association of Young Entrepreneurs of Kazakhstan NCE “Atameken”.

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