What are the prospects for the Rolf car dealer under the management of the Federal Property Management Agency?

One of the largest car dealers in the Russian Federation, Rolf, has been transferred under the management of the Federal Property Management Agency. Previously, the President of the Russian Federation transferred only subsidiaries of global players under external management. “Rolf” was founded by former State Duma deputy Sergei Petrov, who had previously come under criminal prosecution, and through a Cyprus company belongs to a trust acting in the interests of the founder’s family; this information is called generally known on the market. Now Rolf is headed by the former head of the service department of the Avilon car dealer. Previously, Mr. Petrov said that in anticipation of the initiation of a criminal case against him, the founder of Aquilon showed interest in purchasing Rolf.

The assets of one of the largest car dealers in the Russian Federation, Rolf, have been transferred to the temporary management of the Federal Property Management Agency, as follows from the publication published on December 22 decree President of the Russian Federation. Previously, external management was introduced only in companies whose ultimate owners were global players: Carlsberg, Fortum, Uniper, Danone, Amedia.

Press Secretary of the Russian President Dmitry Peskov said that the transfer is connected “with economic feasibility, exclusively economic feasibility, with compliance with the relevant legislation of the Russian Federation and taking into account the well-known international economic situation that is now around us.”

When pointed out that Rolf is a Russian company, Mr. Peskov replied: “There are various ownership patterns that required intervention.”

Rolf, through the Cypriot Delance Limited, belongs to a trust, as market participants say, acting in the interests of the family of the holding’s founder, Sergei Petrov. Mr. Petrov himself, who was a deputy of the State Duma of the fifth and sixth convocations, has not lived in the Russian Federation in recent years. Top managers of the dealer, including Sergei Petrov, several years ago came under criminal prosecution in the case of illegal withdrawal of funds abroad on a particularly large scale as part of an organized group. In September 2023, the Cheryomushkinsky District Court of Moscow sentenced to eight years and six months in a general regime colony for Anatoly Kairo, a former member of the board of directors of the Rolf company. This is the only top manager who was in the Russian Federation. Regarding the transfer of “Rolf” to the management of the Federal Property Management Agency, Sergei Petrov said RBC, that “the state is shooting itself in the foot in the face of its already dilapidated institutions.” He added that he plans to consult with lawyers about appeals to international courts.

Alexey Gulyaev was appointed the new general director of Rolf from December 22. In recent years, Mr. Gulyaev held the position of Deputy General Director for Service at the Avilon car dealer. Previously, until 2015, he worked at Autospecial Center. Sergei Petrov pointed out the interest of the co-owner and founder of Avilon, Alexander Varshavsky, in Rolf right before the start of the criminal proceedings. In September 2023, the head of Avilon, Alexander Nikonov, interview with Kommersant said: “At certain stages, did we consider any kind of purchase or joint work? We did. This was in my memory. There were both mergers and acquisitions. But for the last year and a half we have not negotiated. Our shareholders communicate normally, but no.”

In 2021, Rolf’s business wanted to buy another large dealer holding, Klyuchavto. The parties planned to close the deal in the first quarter of 2022, but this never happened.

Svetlana Vinogradova, who headed Rolf until December 22, was appointed first deputy general director. “Operational management will continue to remain under her leadership,” the company says. The Federal Property Management Agency, as a temporary manager of the shares of JSC Rolf, intends to develop the organization, improve its financial performance and comply with obligations to employees, Rolf clarifies in its statement.

A Kommersant source among auto retail top managers notes that most of Rolf’s business is used cars, and “this is hard operational work.” He notes that there are much simpler assets from the point of view of continuing work: even if you got the business for free, in the end you will have to incur expenses and work with it. According to him, the situation looks strange given that the final owner of Rolf is known to the market, and admits that the introduction of temporary management is connected with the desire of someone to assess the real financial condition of the company. Another source believes that the Federal Property Management Agency can simply take control of the entire administrative part, leaving operational management to the team, and in this form “Rolf” will continue to work for some time.

At the same time, Kommersant’s sources note that the outflow of employees from Rolf has again begun, as was the case during the proceedings and searches in the criminal case.

Rolf’s entire business is concentrated in Moscow and St. Petersburg – the largest markets, which makes it interesting, says Sergei Udalov from Autostat. “At the same time, any mistakes on large volumes can result in great damage, but on large volumes you can have more favorable conditions and discounts,” continues the expert. In general, during a further sale or transfer, any of the holdings may have an interest in the business: “The question is readiness to engage in these processes.” He also adds that business growth is not expected next year.

Olga Nikitina