May 23, 2012

United Grain values at US$174 million ahead of offer

Ahead of an additional share offering in favour of a strategic partner, the market value of Russia's United Grain Company has been estimated at RUB5.44 billion (US$174 million), according to the company's statement Monday (May 21).

The United Grain Company is the government's agent for grain purchases aimed at supporting domestic producers and propelling competition.

The United Grain Company chose Deloitte & Touche CIS and the Institute for Enterprise Issues to determine the company's market value.

Thus, the value of the United Grain Company's common shares was set at RUB1,547 (US$49.5) per unit. At present, the company's charter capital comprises 3,514,940 common shares.

The common share value set by the independent appraiser is to be submitted for further consideration by the company's board of directors as a minimum recommended price of additional offering.

After the additional offering, the Russian government's stake in the company's charter capital is to be kept unchanged at no less than 50% plus one voting share.

So, the Russian government could raise almost RUB5.44 billion (US$174 million) should the extra shares be placed at the recommended price.