CEO: Russia’s Rusagro may issue 10 mln shares to buy assets

MOSCOW, Mar 28 (PRIME) -- Russian agricultural holding Rusagro may issue 10 million shares in the form of global depositary receipts (GDRs) in order to buy some assets, CEO Maxim Basov said during a conference call on Monday.

“We believe that we will see further consolidation in the branches we operate in. The board of directors wants to have an opportunity to acquire assets in exchange for shares,” he said.

The shareholders will consider the issue at an extraordinary general meeting on April 8, and if the decision is approved, the board of directors may decide on the issuance until the end of 2016.

At present, the registered capital of Rusagro is split into 24 million common shares. One share represents five GDRs, which means that if the company issues 10 million shares, its capital will rise by 41.7%.

The family of businessman Vadim Moshkovich owns about 75% in Rusagro, while CEO Maxim Basov holds 7%. The treasury stake stands at 1.8% and free float accounts for around 16%.

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