Renaissance Capital, the investment bank owned by Russian billionaire Mikhail Prokhorov, cut coverage of more than 60 companies in Russia, Kazakhstan, Ukraine, Africa and Hong Kong.
Stocks axed include Russian retail companies OAO Rosinter and OAO Synergy, agriculture producers OAO Razgulay and OAO Rusgrain Holding, according to an e-mailed report today. Real estate companies, AFI Development Plc, RGI International Ltd. and Mirland Development Corp. will no longer be covered. London-listed energy companies Dragon Oil Plc and Tullow Oil Plc were dropped as were Hong Kong-listed China Petroleum & Chemical Corp. and PetroChina Co.
The changes were made “with a view to providing best coverage of those names that are of more interest to our core institutional client base,” David Nangle, head of research, wrote in e-mailed comments. No analysts have been fired as a result of the coverage review, Nangle said.
RenCap shuttered sales, trading and research operations in Almaty, Kiev, Bejing, Hong Kong and some offices in Africa last year. RenCap, as the Moscow-based bank is known, is paring back co-founder Stephen Jennings’s expansion into faster-growing emerging markets. Prokhorov, who bought almost 50 percent of RenCap for $500 million more than four years ago, ousted Jennings in November after rebuffing a request for funding amid losses, two people familiar with the matter said at the time.