October 31, 2011

Russian government may sell 49% of United Grain Co

The Russian government may sell over 49% of state-owned United Grain Company within six months through the offering of additional shares to private investors.

In August, Russian President Dmitry Medvedev issued a ruling to increase the company's charter capital via a share offering. The charter capital is planned to almost double to around RUB233.7 million from RUB116.8 million (US$7.87 million from US$3.93 million). Under the ruling, the government plans to retain a 50% plus one share in the company.

The value of the share offering depends on an estimate of the company, which is to be conducted by an appraiser. The company is interested in any investor aimed at the long term strategic development of the company, he added.

Under a privatisation list for 2012-2016, the government plans to retain a golden share in United Grain Company. A golden share is a nominal share which is able to outvote all other shares in certain specified circumstances.