A family of Russian oligarchs is building London’s second biggest residence after Queen’s Buckingham Palace at an estimated cost of £100 mln. The historical mansion Witanhurst in Highgate, north London, was bought for £50 mln on the name of the British Virgin Islands-registered company, and it became known that the real purchaser and the person behind the company is Yelena Baturina, the richest woman in Russia and the wife of Moscow’s mayor Yuri Luzhkov. His work in this position has been blamed for the destruction of a third part of historical buildings of the city.
According to the submitted plans of the house, the underground labyrinth for the mansion is one of the biggest basement areas in Britain. Among other premises, it will include a cinema, a beauty parlour, swimming pool and parking for 24 cars with a lift to take the vehicles up two flights to street level. Digging works will take up to six months, and the total conversion may cost about £50 mln.
The purchase of Notts County football club by Munto Finance Limited, which is incorporated in the British Virgin Islands and owned by the Middle East businessmen, is investigated by the Football League two months after the deal was completed.
The investors have handed information about their takeover to the League officials, in accordance with the rules, but people from the fottball league consider the information from Notts County had arrived too slowly. Now the Football League is making the analysis of information given by Notts County and making further inquiries.
It is still unknown who are the real investors and the owners of the BVI company who purchased the Notts County. In the course of takeover, the supporters’ trust agreed to “gift” its shares to Munto Finance, which informed about its plans to make significant investments to the club. After the football club’s takeover by Munto Finance, a high-profile manager Sven-Goran Eriksson was appointed to the post of its director.
BVI-registered Munto is a subsidiary of Qadbak Investments, which is the new owner of the BMW Sauber Formula One team. BMW described the company as a Swiss-based entity representing “the interests of certain Middle East and European-based families.” The directors of the BVI company are the executive chairman Peter Trembling and Peter Willett, who is linked to a Dubai investment group.
Actually, Notts County is the oldest professional football club in the world which has stuck in the second league for several seasons.
The relationship between Phoenix Venture Holdings director Nick Stephenson and Dr Qu Li, which was not only professional but also personal, became one of the most unexpected revelations in the investigation connected with MG Rover Group scandal and the way how the directors of Phoenix Venture Holdings paid themselves large amounts of money. It is known that Dr Li received £1.69million for 15 months work providing consultancy services to MG Rover Group. She was already involved in Anglo-Chinese business, and was hired by Phoenix Venture Holdings in January 2004 to provide consultancy services. It became unclear who recruited her but the contract provided a company car and a retainer of £1,000 a week plus £1,000 for each day Dr Li was involved in business negotiations abroad, and £750 a day in the UK. Also, by words of financial director of MGRG, the agreement included a ‘reasonable success fee’ to be agreed by both sides on a case-by-case basis.
In 2004-2005, Phoenix Venture Holdings paid about £375,000 to China Ventures Ltd, a company of which Dr Li was sole shareholder and director. Also, Dr Li received fees through a British Virgin Islands company associated with her. For example, in September 2004, when the Shanghai Automotive Industry Corporation paid £37 million for the blueprints for the Rover 75, Dr Li received a fee in the amount of £740,000 through this BVI company. Quite large amounts were paid for some deals into a Singapore account.
Mr Stephenson paid the money without consulting most of the other directors. He was a member of the Rover group board, in 1996-1999, then Phoenix deputy chairman. Also, he was a member of a consultancy company to the car firm.
Five companies, three of them registered in Singapore, one in the British Virgin Islands and one in Hong Kong, are in the centre of dispute between their shareholders and directors, Ms Helina Chan and Mr Lim Chee Twang. All these companies, engaged in sourcing and selling artworks, belong to an art business called iPreciation, of which both sides were partners for several years.
Mr Lim is the owner of shares in each of Singapore, BVI- and HK-based companies, ranging from 0.001 to 40 per cent. He claims that these companies are operating as a group, and he is entitled to a 40 per cent stake of it. He accuses Ms Chan of misappropriating more than $8 mln from the companies, and refusing to pay out dividends when the companies had a cash of $10 mln. Also, by his words she excluded him from taking part in the management of the companies and wrongfully terminated as an executive director. He asks the court to order Ms Chan to buy out his shares in the companies at fair value.
On the other hand, Ms Chan affirms that she is the person who founded the business and owns it, and she gave Mr Lim a stake in the business only on account of their relationship, and not because they were real business partners. She insists that the five companies are separate entities, and are not subsidiaries of iPreciation.
Mr Lim is suing Ms Chan for mismanaging the company and oppressing his rights as a minority shareholder, and the current trial will determine whether Ms Chan has to buy him out. If he wins, the actual value of the shares will be determined separately.
China Networks International Holdings Ltd., incorporated in the British Virgin Islands as a result of a merger between Alyst Acquisition Corp., a SPAC, and China Networks Media, Ltd., announced that on August 28, 2009 it received notice from the NYSE Amex, informing that the Exchange’s Appeals Panel has affirmed the decision to delist its securities.
More than a month ago, the newly formed BVI company received the first letter from NYSE Amex Staff indicating its intent to proceed with delisting of company’s stock, units and warrants. Current decision was taken by the Panel which agreed that China Networks does not meet initial listing requirements following the consummation of the merger in June 2009. The failure to meet the Exchange’s requirements resulted in the recommendation to complete the delisting without prejudice to the company.
At the moment, China Networks securities continue to trade on the OTCBB. The BVI company is trying to meet the eligibility requirements for listing on a national stock exchange.