UPDATE 2: Russian Ag Bk says reaches principal agreement to buy Eurodon

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MOSCOW, Oct 30 (PRIME) -- Russian Agricultural Bank will acquire turkey producer Eurodon from VEB.RF with the details and structure of the deal being under discussion, the bank said in a statement on Wednesday.

“Russian Agricultural Bank has reached a principal agreement to buy company Eurodon, the deal has not been closed so far. The detailed conditions and structure of the deal are discussed,” the bank said.

“Several investors working in the area have expressed interest in the purchase of the asset. Russian Agricultural Bank will consider all proposals. The choice will be made keeping in mind the need of a fastest relaunch of production.”

CEO of VEB.RF Igor Shuvalov said that the supervisory board of VEB.RF had approved the sale of Eurodon with a discount to a strategic investor.

Shuvalov said that the debt of the project founder to VEB.RF stands at more than 30 billion rubles.

“A tender procedure was held, as a result of this procedure the companies that would like to buy this asset were found. The decision of the supervisory board is to sell with a discount to the face value of the debt but I must say that this price exceeds the one named by a first-rate international appraiser by 2 billion.” Shuvalov said.

“We think that we will sell this asset, albeit at a loss for VEB.RF but with a good financial result and we are fulfilling our development task because a strategic investor will receive the asset.”

Russian Agricultural bank will choose the future investor in Eurodon, he said.

A spokesperson for meat producer Cherkizovo told PRIME that the company is interested in the assets of Eurodon. “Group Cherkizovo continues to be interested in the assets of Eurodon. The turkey production business is priority for us,” the spokesperson said.

(63.8320 rubles – U.S. $1)

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