Moscow, Russia – 24 July 2017 – Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, today announces that it has received a notification from its controlling shareholder confirming that it has decreased its share in the Group.
MB Capital Europe, the controlling shareholder of Cherkizovo Group, has completed the sale of 1,871,339 shares, representing 2.89% of Cherkizovo Group’s GDRs, in favour of Grupo Corporativo Fuertes, S.L. one of Spain’s largest agricultural holdings.
Grupo Corporativo Fuertes, S.L has increased its total shareholding in Cherkizovo Group through the purchase of 1,902,957 shares of Cherkizovo Group’s GDRs on the London Stock Exchange. In 2012, Cherkizovo Group entered into a 50/50 partnership agreement with Grupo Corporativo Fuertes, S.L. to develop Tambov Turkey, a turkey meat production facility, which reached full installed capacity in 2017.
Following the share purchase, the total shareholding of Grupo Corporativo Fuertes, S.L. in Cherkizovo Group now amounts to 8%. The total investment of Grupo Corporativo Fuertes, S.L. now has an approximate value of US$77 million, calculated on the basis of the current market capitalisation of the Group. Previously, Grupo Corporativo Fuertes, S.L. held a 5.12% stake in Cherkizovo Group.