UPDATE: Russia’s Rusagro to raise $250 mln through SPO for investment

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MOSCOW, Apr 21 (PRIME) -- Agricultural holding Rusagro plans to hold a secondary public offering (SPO) to raise about U.S. $250 million for investment projects, including construction of new food clusters in Russia’s Far East and its central part, as well as for upgrade of production capacities and on purchases of new lands and capacities, the company said in a statement.

The SPO is to start immediately after the announcement. JP Morgan, UBS and VTB Capital act as coordinators and book runners of the SPO. Rusagro’s core owner Vadim Moshkovich plans to buy Global Depositary Receipts (GDRs) worth $100 million, the CEO also plans to buy securities. The SPO also set a 180-day moratorium on sales of the purchased shares.

The company will upgrade three sugar refineries it is buying from the Razgulay group of companies. The raised funds will also be spent to buy new land and production facilities.

On April 11, Rusagro said the company’s shareholders allowed an issue of up to 10 million shares in the form of GDRs. In March, CEO Maxim Basov said the company may use the issue to swap the stock for assets.

Currently, the Moshkovich family owns about 75% in the company, Basov holds a 7% stake, 1.8% are treasury shares, and 16% are in free float.

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