The Russians are coming, with M'sian firm in tow

http://www.businesstimes.com.sg/sub/...76893,00.html?

Published April 29, 2008

The Russians are coming, with M'sian firm in tow

New owners of Dunham-Bush want to move HQ to S'pore, list here

By CHUANG PECK MING

(SINGAPORE) Mikhail Bolotin, one of Russia's richest men, reportedly paid US$100 million in June last year for Dunham-Bush in Malaysia, got it delisted and is now moving the company's headquarters to Singapore. He is seeking a listing on the stock exchange here to raise US$1 billion.

Vladimir Korjevski, a director of Dunham-Bush, a profitable global manufacturer of commercial and industrial air-conditioning and refrigeration equipment which was listed on the Kuala Lumpur Stock Exchange, told BT yesterday that the company is already taking the first step in moving its global sales and marketing office across the Causeway.

The company, which was set up in 1894 by American owners and has a Singapore office, aims to set up its regional and global HQ here by the end of the year. It hopes to get a listing on the Singapore Exchange by 2010 - which could be a first because currently there is no Russian-controlled company listed on the SGX.

Phuar Boon Hock, Dunham-Bush's vice-president for the Asia-Pacific region in Singapore, said the company's officials, along with the local branch of VTB Bank (the former Moscow Narodny Bank), are in talks with the Economic Development Board and International Enterprise Singapore to discuss its expansion and tax incentives.

Jeffrey Low, the bank's local head for Russian business, disclosed that Dunham-Bush has already inked a Memorandum of Understanding with VTB here to arrange a US$50 million financing to support the company's regional operations which include key markets in South-east Asia, China, India and the Middle East.

Dunham-Bush, controlled by the Berjaya Group in the 15 years before the latest change of hands, believes Singapore will offer the company a more strategic location to expand in the global markets - and a public listing here will make it better known internationally, according to Mr Korjevski who was in Singapore for a corporate roadshow.

Dr Bolotin (he has a PhD in science), listed as one of the 100 wealthiest individuals in Russia in Forbes magazine's latest rankings, is reportedly linked to former Russian president Vladimir Putin and owns Russia's largest heavy industrial and agricultural equipment group, Promtractor.

Promtractor has turnover of more than US$1.5 billion yearly.

Since the early 1990s, the 46-year old Dr Bolotin and his partners have also been building up the air-conditioning business in Russia through Ipokrom which boasts sales of US$2.6 billion last year.

The acquisition of Dunham-Bush was made through Agromash, Dr Bolotin's holding company which, according to Rob Addink, Dunham-Bush's executive director for global sales & marketing, was Dunham-Bush's distributor in Russia for 12 years.

Dunham-Bush has manufacturing operations in Malaysia, the United States, the United Kingdom and China. It turned in an estimated sales of US$163 million for the year ending March 2008.

Mr Addink said under its new owner, the company aims to increase its revenues to US$800 million in three to five years through organic growth and acquisitions.

In Singapore, Dunham-Bush has provided cooling systems for the Gateway Twin Towers, Pontiac Marina, Marina Square, CPF Building, KK Hospital and Circle Line-Stage 3 Subway.

Across the Causeway, the prime minister's residence in Putrajaya, KL International Airport, Marriott Hotel Putrajaya and UTM University Malaysia are among others that have installed Dunham-Bush systems.

The company also sells its systems and equipment in China, India, Europe, the Middle East and the US.