Page 170 - RusRPTNov21

The Everest of RUB1tn Mcap. The main goal of the deal is the opportunity to grow without being limited by forestland. As a result, Segezha is to hold ca. 20% of total Russian AAC, which has logging costs 50-70% lower than in Europe. During his interview (in Russian) with Elena Sakhnova, Segezha CFO Rovshan Aliyev said: “We are still at the beginning of the mountain. Everest is in front of us and we still have a long way to go.” We have tried to digitise the height that the company might reach by 2030 and this is... RUB1tn Mcap.
Instant effect. The deal is planned to be completed by BoY 2022, so Segezha’s financials would reflect it starting from 1Q22. Segezha expects the acquired assets to generate revenues of RUB30bn in 2021 (34% above our forecast for Segezha) and RUB11bn in EBITDA (39%).
Simultaneously, Segezha’s main shareholder, AFK Sistema, has announced the sale of a $150mn (around 9%) stake in the Group to Bonum Capital, which is the seller of the Siberian assets to Segezha. Thus, Sistema’s share is to decline from 72% to ca. 63%, while Bonum’s share increases from 5% to ca. 14%, so the free-float will be 20%. Although the transaction is to happen shortly after the lock-up period for Sistema ends, we have not noted such a pattern before in the placements of Sistema’s subsidiaries.
170 RUSSIA Country Report November 2021 www.intellinews.com