Segezha buys Siberian forests from Bonum Capital for $515 mln

MOSCOW, Oct 11 (PRIME) -- Russian pulp and paper holding Segezha Group has signed an agreement to buy forest resources and timber assets in the Irkutsk and Krasnoyarsk regions from international investment company Bonum Capital for U.S. $515 million, the companies said in a statement on Monday.

“Bonum capital signed an agreement to sell 100% in holding company Inter Forest Rus LLC, which united 24 pulp and paper assets and significant forest resources in the Irkutsk Region and the Krasnoyarsk Region, to Segezha Group for $515 million,” the investment company said.

Inter Forest Rus unites four timber processing plants and one plywood mill, as well as 98 river ships and rental forest areas with an annual allowable cut of 10.9 million cubic meters of timber.

Segezha said that it would finance the deal using the money raised in a recent exchange bond placement and an initial public offering. The company plans to close the deal in January–March 2022 after receiving regulatory and corporate approvals and meets some other conditions.

Bonum Capital struck a separate agreement with Segezha’s core owner, multi-industry holding Sistema, on acquisition of a stake in the pulp and paper holding for $150 million. The deal will make Bonum Segezha’s second largest shareholder with a stake of around 13%. The deal should be closed in January–March 2022 as well, and Bonum will finance the deal with banking financing and money from the sale of Inter Forest Rus.

Sistema owns 70.13% in Segezha Group, while the minorities own a combined stake of 3.59%, members of the board of directors and the management board own 2.38%, and free-float is 23.9%.

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