FAS permitted structures of Cherkizovo to buy Voronezhmyasoprom

July 13, 2012

The Federal Antimonopoly service (FAS) of Russia approved the application of one of the largest Russian producers of meat and meat products – OJSC Cherkizovo Group – about the acquisition of a 99.96%, stake in the charter capital of Voronezhmyasoprom LLC it said in the message from the Antimonopoly Department.

As stated in the FAS reports, the right to acquire the share capital of Voronezhmyasoprom at a rate of 99.96% were received by agro-industrial Complex Mikhailovsky LLC and the Cypriot company Pike Investments Limited.

In June, Cherkizovo acquired a number of agricultural assets at Voronezhmyasoprom, including a swine nucleus unit, grain elevators and a land bank to the total amount of 4.46 billion roubles.

In particular Cherkizovo acquired a swine nucleus unit in the Voronezh region where pig breeds Dyurok, Yorkshire and Landrace are bred. The complex’s production facilities include a swine nucleus unit hryachnik, which produces 2.4 thousand sows, with a platform to grow up to 10 thousand heads of the total content and site feeding on 6.7 thousand heads of the total content.

As noted earlier, to complete the deal, it is necessary to obtain approval from the Federal Antimonopoly service of Russia (FAS). “The cost of acquired assets is of 4.46 billion, including debt to the amount of 2.8 billion roubles, which Cherkizovo Group will take on”, according to a statement from the FASPayment for the acquired assets will be made in cash to the amount of 1.26 billion roubles and 795 thousand shares of OJSC Cherkizovo Group.

As the materials of the BIR- Analyst, the main owner of Voronezhmyasoprom LLC is a National agro-industrial company. Its co-owners are the beneficiaries of Cherkizovo – Igor Babaev and his family members.