United Capital Partners buys a 48% stake in VKontakte

United Capital Partners buys a 48% stake in VKontakteA consortium of investors controlled by the president of United Capital Partners Fund (UCP) Ilya Scherbovich, became the owner of a 48% stake in Russia’s largest social network VKontakte. Vyacheslav Mirilashvili and Lev Leviev, longtime partners of VKontakte CEO and founder Pavel Durov, sold their shares.

The cost of purchase, financed by the consortium members, was not disclosed. The net profit of VK.Com Holdings Ltd owned by VKontakte, JSC (incorporated in the British Virgin Islands), amounted to 516.45M RUR in 2011, and the revenues - 3.285B RUR.

As a result of the transaction, the consortium became the largest shareholder of VKontakte: Mail.ru Group, controlled by Alisher Usmanov’s organizations, owns about 40% in the social network, the founder and CEO of VKontakte Pavel Durov owns about 12%. However, Usmanov previously transferred his assets under the management of Durov, who said he knew nothing about the impending deal. A board meeting is scheduled for May to confirm or cast doubt on Durov’s authority.