Cherkizovo plans common share SPO, to change divs policy

MOSCOW, Apr 3 (PRIME) -- Meat producer Cherkizovo Group will hold a secondary public offering (SPO) of common shares on the Moscow Exchange to raise U.S. $150 million and change the dividend policy to pay 50% of net profit under International Financial Reporting Standards, the company said in a statement on Tuesday.

“Under the proposal, the current shareholders, including company MB Capital Europe Ltd, whose beneficiaries are members of the Mikhailov-Babayev family (co-founders of the group), will sell shares. The precise number of these shares will be defined during book building,” the company said.

Part of the group, company Mikhailovsky, will sell 2.917 million shares, or an about 6.63% stake. MB Capital Europe can sell additional shares to fulfill an additional placement option.

Cherkizovo will spend the raised funds on corporate goals, including debt repayment and potential acquisitions. The founders plan to retain a majority stake and control over the company.

Under the new policy the dividends will be paid if the net debt to adjusted earnings before interest, taxes, depreciation and amortization ratio is below 2.5 in the medium term and if the company is able to finance operating activities and development or strategic purchases.

The dividend policy will be submitted for approval by the board of directors at one of the next meetings.

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