Igor Balenko became a co-owner of TKS

The conflict between the shareholders of the Western Ukrainian development company TKS, Ivan Torsky and Vladimir Govirko, ended with the latter selling his share. The owner of 39% of TKS shares, the value of which experts estimate at $80 million, became Igor Balenko, co-owner of one of the largest retail chains in Ukraine, Furshet, and a long-time partner of Mr. Torsky.

Truskavets Resort Service (TCS) has been operating in Truskavets, Lviv, Drogobych, Borislav and Novovolynsk since 1998. The company's portfolio includes 17 real estate projects with a total area of 248 thousand square meters. m. The total area of TKS land for development as of July 2007 was 94.3 hectares, of which about a quarter is owned by the company. Before the deal, 39% of the company’s shares belonged to TKS General Director Ivan Torsky and Lviv Regional Council Deputy Vladimir Govirko, another 22% in the form of GDRs are listed on Deutsche Borse. Capitalization on Friday: $204.5 million.

Yesterday, the company's press service reported that Igor Balenko became the owner of 39% of TCS shares: "Now the main shareholders of the holding are TCS General Director Ivan Torsky and Igor Balenko." Mr. Balenko clarified to Kommersant that the deal to buy out the share from Vladimir Govirko has already been completed. The parties did not disclose the purchase price.

Ivan Torsky is a long-time partner of Igor Balenko. He owns 15% in the Clubhouse Group, which manages the 7 Days hotel chain (about 68% for Mr. Balenko). Also, TCS, together with Igor Balenko’s partner - the French Auchan (the parties created a joint venture to develop the Immochan shopping center network) - is building a shopping center in Lviv.

Igor Balenko explained the purchase of TKS shares by his interest in the development business. “In addition, there was a conflict between partners in the company that could only be resolved in this way,” he added. Let us remind you that on February 13, Ivan Torsky was wounded by a gunshot in his office in Truskavets. On the same day, the investigative department of the Main Directorate of the Ministry of Internal Affairs in the Lviv region opened a criminal case for causing grievous bodily harm, and Vladimir Govirko was put on the wanted list - Ivan Torsky testified against him (see Kommersant on February 20). It was not possible to contact Mr. Govirko yesterday.

Based on the current capitalization of TKS, 39% of the company’s shares could be worth $80 million, says Sergei Lesik, director of IC Galt & Taggart Securities. “But, according to our estimate, the market value of the company is approximately twice as high, so 39% of TKS shares could cost Mr. Balenko even more – $80-160 million,” he notes. At the same time, due to a corporate conflict, the company's shares could be sold at a discount. “Mr. Govirko found himself in a rather difficult situation and could have given away the shares for less than their market value,” Mr. Lesik does not rule out.

Igor Balenko expects that the presence of development and retail businesses in his property will contribute to their development. “These types of businesses are interconnected. Moreover, TCS’s main portfolio is retail real estate,” says the entrepreneur. “It all depends on how the relationship develops between Messrs. Torsky and Balenko. In any case, in the person of Igor Balenko, TCS will receive a potential buyer for its construction and vice versa,” agrees Sergei Lesik.

Elena Kommersant-Sinitsyna

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