November 14, 2011

Russia's Cherkizovo Group, after altering certain parameters, has resumed a private offering to buy 100% of Mosselprom, Cherkizovo Group said Friday (Nov 11).

Cherkizovo Group started offering 1.7 million additional shares in order to buy Mosselprom on August 22 but suspended it on October 13 in order to introduce the parameters.

The changes concern the completion date of the offering. Under the revised prospectus, the offering's completion date is considered to be the date when the latest share of the additional issue is placed, or one year after the additional issue was registered.

In late June, the group's board of directors set the share price for its additional offering at RUB854.80 (US$28.22) per share. Cyprus-registered Tuxford Trading Limited holds 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$14,220) 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 partially made 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.

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

Mosselprom is a vertically integrated poultry complex with facilities in the Moscow and Tula regions.