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. Last Updated: 07/27/2016

Deripaska Puts His Fortune at $14Bln

Metals billionaire Oleg Deripaska made public Monday the structure and estimated value of his umbrella investment holding Basic Element, sticking a $14 billion price tag on his assets.

"Publicly disclosing information about the companies in our investment portfolio is a very important step based on the principles of our agreement with the European Bank for Reconstruction and Development and the International Financial Corporation," general director of BasEl, Gulzhan Moldazhanova, said Monday in a statement.

With greater transparency, BasEl may sell a stake in some of its subholdings, such as energy holding En+ that contains Deripaska's Russian Aluminum company, to financial investors, Moldazhanova said in a Vedomosti interview published Monday.

A BasEl spokesman Monday confirmed that a listing is a "future option" for many of Deripaska's assets but said concrete decisions had yet to be made.

Deripaska is the 100 percent owner of BasEl. His largest assets are the world's third-largest aluminum producer RusAl, whose value BasEl estimates at $7.2 billion; the country's second-largest automaker GAZ, worth $3.4 billion; and the $1.7 billion insurance firm Ingosstrakh. All valuations are based on the market capitalization of the listed assets and BasEl's own estimates for the privately held assets, the spokesman said.

Although Deripaska is seeking investors to boost the expansion of individual businesses, he will not sell a stake in his BasEl holding, Moldazhanova said. En+ subholding could be "one of the first [assets] into which an outside investor can come in," she said.

Deripaska already disclosed RusAl's corporate ownership and select financials earlier this year to comply with the requirements of its $150 million loan agreement with the IFC and the EBRD. It did not publish its profit numbers but pledged to improve corporate governance by appointing two independent directors this fall and another in 2007.

BasEl on Monday published on its web site a code of ethics it said it had adopted in April but, like RusAl, it did not disclose information about its profits.

Renova, which is Deripaska's partner in developing a giant alumina deposit in Russia's northwest republic of Komi, said Monday it would consider its information policy in the future, without elaborating.

An Interros spokeswoman said "as a limited liability holding company, Interros is not obliged to disclose its financials and corporate structure."

"We make all this information available, however, on request from the tax authorities, investors," or other interested parties, the spokeswoman said.

A desire to increase the investment value of a company through the relatively low-cost measure of publicizing accounts and attracting independent directors and assessors has pushed Russian companies to be more open and, hence, investor-friendly, said Alex Kantarovich, chief strategist and head of equities at MDM bank.

"If you want to tap capital markets, you have to be on your best behavior," Kantarovich said.