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bne Invest
March 22, 2019 www.intellinews.com I Page 13
Russian meat major Cherkizovo aims
at $200mn SPO
One of Russia's largest meat producers Cherkizovo Group will seek to raise up to $200mn through a secondary public offering (SPO) on the Moscow Exchange, the company said on March 19. The company will use its treasury shares and allow shareholders to sell.
The funds raised in the SPO will be used for general corporate purposes, cutting leverage,
as well as an additional share issue planned for after the offering. Details on the SPO have not yet been released. Cherkizovo said the freefloat will be aimed at 25% and that the Babayev family will retain control over the company.
Last week the shares of Cherkizovo Group jumped 50% on the Moscow Exchange hitting all-time high of RUB2,250 amid the anticipated acquisition of one of Russia's largest poultry producers Eurodon (Evrodon).
Already in November 2018 bne IntelliNews suggested that Cherkizovo would be the most likely buyer for troubled Eurodon. Cherkizovo has been consolidating poultry assets through acquisitions ahead of the upcoming opening of the vast Chinese market to Russian frozen poultry supplies.
At the end of 2017 Cherkizovo was valued at circa $2bn with 82.1% of the company’s stock controlled by the family of its founder Igor Babayev, after it bought a 21.05% stake for RUB12bn ($200mn) from the second-largest shareholder, leading Russian fund Prosperity Capital Management.
In August 2018 the owners of Cherkizovo moved the Cyprus-registered assets from their offshore domicile to Russia.
Read the full story here
Novatek mulls sale of 30% in its Arctic LNG 2 to Saudi Aramco
Russian independent gas producer Novatek is mulling the sale of up to 30% in its Arctic LNG 2 project to Saudi Aramco if the terms are favourable terms, CEO Leonid Mikhelson told reporters on March 17.
Mikhelson said that the company expects a good cooperation under favourable terms.
Said that that on the operating project Yamal LNG (all three main gas liquefaction trains have been commissioned), the company has reduced spot supplies volumes, whereas on long-term contracts they are growing: their share is expected to reach the highest level by the end of
the first or the beginning of the second quarter of 2020.
"They (spot supplies) are already declining, each three months they decline. Long-term contracts will fully enter into force roughly at the end of Q1 or the beginning of Q2 of 2020," he said.
Arctic LNG 2 is Novatek’s second LNG project with the capacity of 19.8mn tonnes. It is scheduled
for commissioning in 2022-2023. The Russian company has already closed the deal to sell a 10% stake in the project to France’s Total. Companies from Japan, South Korea and Saudi Arabia are also interested in acquiring a share in the plant.