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#70 Leonid Mikhelson $15.3B

Random fact: Named his philanthropic foundation after his daughter, Victoria.

Overview

Mikhelson is chairman of Novatek, the largest non-state-owned natural gas provider in Russia. He has a quarter of the publicly traded company, which produces 11 percent of the country's gas. He also owns a 48.5 percent stake in closely held petrochemical producer Sibur and an interest in Promsvyazbank.

As of July 23, 2017:
Last change -$170M (-1.1%)
YTD change -$1.92B (-11.1%)
Industry Energy
Biggest asset NVTK RX Equity
Citizenship Russian Federation
Age 61
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Leonid Mikhelson's net worth of $15.3B can buy ...

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troy ounces of gold
0
barrels of crude oil

... and is equivalent to ...

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of the GDP of the United States
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of the total wealth of the 500 richest people in the world
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of the top 100 U.S. college endowments
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of the top 200 U.S. executives’ total awarded compensation
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of U.S. existing home sales
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times the median U.S. household income

Latest News

Net Worth Summary

Cash
Private asset
Public asset
Misc. liabilities
Confidence rating:

The majority of Mikhelson's fortune is derived from his 25 percent stake in publicly traded Novatek, Russia's largest non-state-owned natural gas company and producer of 11 percent of the country's gas, according to the company's website in April 2017. He holds the shares directly and through three holding companies: Grant and Levit in Russia, and SWGI Growth Fund in Cyprus.

In 2010 and 2011, he bought a controlling stake in closely held petrochemical company Sibur from Gazprombank, which is affiliated with Russia's state-controlled gas producer, Gazprom. He holds a 48.5 percent stake in the company. It's valued using reported financial results for 2015 and the average enterprise value-to-Ebitda and enterprise value-to-sales multiples of three publicly traded peer companies: LyondellBasell Industries, Saudi Basic Industries and Petronas Chemicals. A 10 percent liquidity discount and 5 percent country risk discount are applied.

Mikhelson also owns 3.3 percent of Promsvyazbank. The asset is valued applying the bank's reported financials for 2016 and the average price-to-book value multiple of two publicly traded peers: Bank Otkritie Financial Corporation and Bank Vozrozhdenie.

The value of his cash investments is based on an analysis of dividends, insider transactions, taxes and market performance. The amount includes works of art by Gerhard Richter, Christopher Wool and Olafur Eliasson.

Biography

Birthdate: 8/11/1955
Family: Married, 2 children
Education: 1977, Kuybyshev Engineering & Construction Institute, Graduated

Leonid Mikhelson was born in the southern Russian city of Kaspiisk in 1955. After graduating from the Kuybyshev Engineering and Construction Institute in 1977, he worked as a foreman. In 1985, he became chief engineer of Ryazantruboprovodstroy trust, a gas pipeline constructing company that was privatized in the post-Soviet government asset sales program in the early 1990s and renamed Nova. Two years later, Mikhelson was named head of the trust.

He established the investment company Novafininvest to pursue oil and gas exploration in 1994. It was the predecessor to today's Novatek, Russia's biggest non-state gas producer, second only to Gazprom in terms of production volume. The company was renamed Novatek in 2003, and Mikhelson continued as its CEO.

Novatek's management sold 19 percent of the company on the London Stock Exchange, raising $966 million in 2005. Mikhelson owned almost 7 percent of the business and collected more than $350 million and, a year later, state-controlled Gazprom bought 19.4 percent of Novatek from him and his partners for more than $2.3 billion.

He remains Novatek's largest shareholder, with a 25 percent stake in the company. Fellow billionaire Gennady Timchenko, who began buying Novatek shares in 2008, controls about 23 percent. French oil company Total owns 18.6 percent.

Mikhelson's Dellawood Holdings bought Sibur, Eastern Europe's biggest petrochemical producer, from Gazprombank, a bank affiliated with the natural gas company Gazprom. He bought an initial 25 percent stake from the bank in December 2010 and another 25 percent in March 2011. Cyprus-based Dellawood boosted its Sibur holding to 100 percent in November 2011. Dellawood was renamed Sibur Ltd., and for the first time disclosed that its shareholders also included Timchenko and former Sibur managers.

Today Mikhelson holds 43.2 percent and Timchenko has 14.2 percent. Mikhelson became chairman of Sibur's board of directors in 2011.

Milestones
  • 1977 Graduates from Kuybyshev Engineering Institute.
  • 1985 Joins construction group Ryazantruboprovodstroy as engineer.
  • 1994 Founds and heads Novafininvest to explore for oil and gas.
  • 2003 Novafininvest renamed Novatek; Mikhelson continues as CEO.
  • 2005 Novatek sells 19 percent of stock on the LSE for $966 million.
  • 2006 Gazprom purchases 19.4 percent stake in Novatek.
  • 2009 Establishes Victoria, the Art of Being Contemporary foundation.
  • 2011 Secures control of Sibur, Russia's largest petrochemical firm.
  • 2014 Novatek sanctioned by the U.S Office of Foreign Assets Control (OFAC).