Moscow, Russia – 12 July 2017 – Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, yesterday announced a securities purchase agreement with Prosperity Capital Management.
The controlling shareholder of Cherkizovo Group, together with its affiliates, reached an agreement to acquire approximately 21% of the Group's ordinary shares and GDRs from funds and portfolios under the management of Prosperity Capital Management at a price of RUB 1,300 per ordinary share in the total amount around RUB 12 billion.
It is anticipated that following completion of the transaction with Prosperity, a mandatory tender offer will be made to all shareholders of Cherkizovo Group in compliance with Russian legal requirements at the price per share not lower than the price per share in the Prosperity transaction. The transaction with Prosperity is subject to approval by the Russian Federal Antimonopoly Service and is expected to be completed within 30 days.
Sergey Mikhailov, CEO of Cherkizovo Group, commented: “Cherkizovo Groupis currently reviewing its capital markets strategy, including different ways to increase the free-float, stock liquidity and ensure sustained growth in shareholder value. The deal with Prosperity Capital Management is part of this strategy”.
Alexander Branis, Chief Investment Advisor of Prosperity Capital Management, commented: “Prosperity Capital Management is undertaking the sale within the framework of its current investment management strategy. The firm retains its long-term commitment to the Russian agricultural sector”.