PRESS: Eurodon seen managed by Cherkizovo, Damate – source

MOSCOW, Feb 21 (PRIME) -- Russian turkey meat producer Eurodon may be transferred under joint management of meat producers Cherkizovo Group and Damate, Kommersant business daily reported Friday citing sources.

One of the sources said the deal was proposed by one of bank creditors, and a decision could be made in the second quarter of this year.

Eurodon used to be one of Russia’s largest producer of turkey meat, but the company suffered financial troubles for several years aggravated by the outbreaks of bird flu in 2016, 2017, and 2018.

VEB.RF has been the creditor and co-owner of Eurodon since 2016.

The bank’s CEO Igor Shuvalov said in October 2019 that the bank’s supervisory board approved the sale of Eurodon with a discount to a strategic investor. He also said then that the debt of the project founder to VEB.RF stood at more than 30 billion rubles. Russian Agricultural Bank said then it reached a principal agreement to buy Eurodon from VEB.RF and will choose the future investor in Eurodon.

Cherkizovo of the Mikhailov family producing turkey meat under the Pava-pava brand and Damate of Naum Babayev were interested in Eurodon, Kommersant said. Stavropol-based agricultural group Resource of Viktor Nauruzov was also named among possible buyers of Eurodon. But VEB.RF was not happy with any of proposals of possible investors, the daily said. Sources said the bank estimated the asset at 10 billion rubles.

(63.7413 rubles – U.S. $1)

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