October 14, 2011


Russia's Cherkizovo Group delays giving extra shares



Citing a decision of its board of directors, Russia's Cherkizovo Group has delayed a private offering of 1.7 million additional shares, the company said in a statement Thursday (Oct 13).


In order to change some parameters of the offering in the prospectus, Cherkizovo Group started offering these shares on August 22 under a deal to acquire 100% in Russian poultry producer Mosselprom, the group said.


In late June, the group's board of directors set the share price for its additional offering at RUB854.80 (US$27.37) per share. Moreover, Cyprus-registered Tuxford Trading Limited has a pre-emptive right to buy the additional issue.


Following the additional offering, Cherkizovo Group planned to increase its charter capital by 4%. The group's current charter capital amounts to RUB430,693 (US$13,788) and is split into 43,069,355 shares.


In mid-May, Cherkizovo Group said that it is to pay US$252.9 million for Mosselprom, including the poultry producer's debt of US$183.8 million. The payment is to be made partially in shares.


Cherkizovo Group's key shareholders were MB Capital Partners, holding a 49.55% stake, and the Bank of New York International Nominees, holding a 29.47% stake as of June 30.


The price of one Cherkizovo Group share was at RUB565 (US$18.09) on the Moscow Interbank Currency Exchange (MICEX) on Thursday.


Cherkizovo Group is one of the largest meat processors in Russia.