Cbank says VTB Capital’s Novorossiysk Grain Plant offer improper

MOSCOW, Nov 6 (PRIME) -- The central bank has ruled VTB Capital’s mandatory buyback offer to the minorities of Novorossiysk Grain Plant grain terminal inappropriate, the regulator said in a statement on Tuesday.

In August, VTB Capital increased its stake in Novorossiysk Grain Plant to 29.9% from 22.25%. In October, the company sent a mandatory offer to buy out 46.7 million shares, or 69.2% of the issued capital, of Novorossiysk Grain Plant to the central bank.

“The Bank of Russia…has made a decision that the mandatory buyback offer by VTB Capital regarding securities of public joint-stock company Novorossiysk Grain Plan is inappropriate, and issued a corresponding ruling,” the central bank said.

A spokesperson for United Grain Company (UGC), the holder of 51% of the plant, said that UGC has no plans to sell its stake.

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