Page 161 - RusRPTSept21

The current CEO of Rusagro Group, Maxim Basov, might resign from his current role in order to pursue personal projects, Kommersant, citing unnamed sources on the market, writes n August 26. His contract runs until 12 November, and the final decision is to be taken at the Board of Directors meeting to be held on the respective date.
Basov has been CEO of Rusagro for the last 12 years and played a crucial role in developing the company’s investment case, having supervised the IPO and the acquisition of assets which were incremental in the development of the company’s business (SolPro and Razgulay). During his leadership, EBITDA grew 6.3x (to RUB32bn) and revenues reached RUB160bn (up 6.4x), while the company became the second largest sugar producer (13% market share in 2020), the third largest pork producer (6% share) and the leading bulk sunflower oil producer (12% share).
Basov is also the second largest shareholder in Rusagro, with a 7.54% stake (worth $155mn, as of yesterday’s close).We note his wide and deep involvement in various corporate matters, ranging from operational management to strategy development and communication with the investment community. His sizable participation in the share capital in Rusagro, created a strong alignment between shareholder and management targets, offering a unique organisational structure.
His potential departure could become a sizable challenge for Rusagro in areas of leadership replacement, with potential downside risks at the launch of the new season, amid the robust outlook for the segment. Rusagro’s GDR are up 40% YTD; they demand a new season EV/EBITDA of 5.2x and offer a 12-mo dividend yield of 11%, we calculate. We see the near term results as appealing, but anticipate stock being capped by the top management uncertainties.
9.2.7 TMT corporate news
• Yandex
Yandex’s deal to buy Uber’s stakes in JVs at an appealing price. A broadly expected deal with ultimate goal to consolidate prospective businesses, spur synergies. Analysts found the valuation for the deal appealing for Yandex, both when it comes to the current $1bn acquisition and to the option agreement.
161 RUSSIA Country Report September 2021 www.intellinews.com