Millhouse Capital to Manage Sibneft Stake and Other Assets

Oct 24, 2001, 01:00 ET from Sibneft

    MOSCOW, Oct. 24 /PRNewswire/ -- A group of core shareholders in Sibneft
 will entrust management of an extensive portfolio of assets spanning key
 sectors of the Russian economy to a newly created asset management group,
 Millhouse Capital.  The assets will include an 88% stake in Sibneft, the
 country's fastest growing oil company, and a 50% stake in Russian Aluminium,
 the world's second largest aluminium producer.
     The company will also manage a series of other investments held by
 Sibneft's core shareholders, including investments in the airline,
 electricity, automobile, pulp and paper processing, insurance and banking
 industries.  Millhouse Capital will manage assets, but will not own
 significant assets itself.
     Millhouse aims to achieve major enhancements to shareholder value at each
 of the companies it manages, and will also seek to expand its existing
 portfolio of assets. Each of the group's assets will be managed as a separate
 profit centre, without any cross-subsidization.
     Millhouse will apply global best practice in the field of management.
 "Millhouse aims to be a major engine of growth in the Russian economy,
 bringing world-class management and access to capital to companies with high
 growth potential," said Sibneft president Eugene Shvidler, who will serve as
 chairman of the board of directors of Millhouse.
    "The company aims to be a progressive force for change on the Russian
 corporate landscape. Millhouse will target undervalued assets where growth in
 shareholder value has been hindered by ineffective management, lack of
 investment or bad corporate governance."

SOURCE Sibneft