Russian meat processor Cherkizovo Group has started a private offering of an additional issue of 1.7 million shares under the deal to acquire 100% in Russian poultry producer Mosselprom, the group said in a statement Monday.
In late June, the group’s board of directors set the share price for its additional offering at 854.80 rubles per share. At that, Cyprus-registered Tuxford Trading Limited has a preemptive right to buy the additional issue.
Following the additional offering, Cherkizovo Group plans to increase its charter capital by 4%. The group’s current charter capital amounts to 430,693 rubles and is split into 43,069,355 shares.
In mid-May, Cherkizovo Group said that it is to pay U.S. $252.9 million for Mosselprom, including the poultry producer’s debt of $183.8 million. The payment is to be effected partially in shares.
Cherkizovo Group’s key shareholders were MB Capital Partners, holding a 49.55% stake, and the Bank of New York International Nominees, holding a 29.47% stake as of June 30.
The price of one Cherkizovo Group share was at 665.2 rubles on the Moscow Interbank Currency Exchange (MICEX) at 3.38 p.m. Moscow time on Monday.
Cherkizovo Group is one of the largest meat processors in Russia.
Mosselprom is a vertically integrated poultry complex with facilities in the Moscow and Tula regions.
Petelinka, one of Cherkizovo Group’s flagship brands and the best-selling chicken product, has entered into partnership with the iconic GUM Ice Rink, which opens annually on Red Square. This year, visitors will have an opportunity to take a break in the cozy Petelinka cottage and take photos next to a Christmas tree standing on chicken legs.
Cherkizovo Group employees have held a volunteer event supported by the Ray Foundation for Helping Homeless Animals. They brought food, medicines and other useful supplies to two Moscow shelters and helped with dog walking.
Cherkizovo Group’s chicken and turkey products have once again been awarded the annual Product of the Year title, with flagship brands Petelinka and Pava-Pava winning two categories of the award.
Cherkizovo Group, Russia's largest meat producer, is taking part in Our Brand, an international food festival in Ufa. The Company showcased its products during a tasting session at its stand.