Igor Babayev's family will send 12 billion rubles. Prospectity Capital Management purchased 21.3% of Cherkizovo Group. Thus, the main shareholder consolidates more than 86% of the authorized capital of the agricultural holding, after which he will send the remaining shareholders a mandatory offer to redeem their securities. In the future, Cherkizovo is going to increase the free-float, not excluding the SPO.
The controlling shareholder Cherkizovo, Igor Babayev's family, together with affiliated persons, agreed with the funds and portfolios managed by Prosperity Capital Management to repurchase their share - 21.3% in the group's capital. The transaction will be based on the price of 1.3 thousand rubles. Per share. In total, about 12 billion rubles will be allocated to purchase shares owned by Prosperity and GDR (three receipts equal to two shares), Cherkizovo said. Now the family of Mr. Babaev is controlled by 65% of the group, mainly through MB Capital Europe Ltd. Another 4.89% "Cherkizovo" owns Norges Bank, 5.06% from the Spanish partner of the agricultural holding Grupo Fuertes.
Cherkizovo is one of the largest producers of chicken meat, pork and meat products in Russia. Its sales in 2016 increased by 9%, to 903 thousand tons, revenue for the same period increased by 7%, to 82.4 billion rubles., Net profit decreased by 68%, to 1.9 billion rubles.
Today at the close of trading on the Moscow stock, shares of Cherkizovo cost 1.3 thousand rubles. For a paper, the capitalization amounted to 57.3 billion rubles. The cost of GDR Cherkizovo on the London Stock Exchange at the end of the day was $ 14 (844.2 rubles at the rate of the Central Bank on Tuesday) for a receipt. Capitalization of Cherkizovo in London - $ 923.2 million (55.66 billion rubles at the rate of the Central Bank on Tuesday).
In "Cherkizovo" they told that the initiator of the deal was Prosperity. Director Prosperity Alexey Krivoshapko told Kommersant that negotiations with the main owner of Cherkizovo were conducted for about five months. "We found a price that suits both sides," Mr. Krivoshapko said. He noted that for Prosperity interest in the transaction was caused, among other things, by the significant growth of Cherkizovo securities in recent months. Since early 2017, the shares of the group on the Moscow Stock Exchange have risen in price by 69%, receipts in London - by 63%.
The deal with Prosperity should be approved by the Federal Antimonopoly Service and, as expected, will be completed within 30 days, they say in Cherkizovo. After that, in accordance with the law, all other shareholders of the group will be sent an offer for redemption of securities at a price no lower than in the transaction with Prosperity. Senior analyst of BCS Global Markets Marat Ibragimov doubts that other shareholders will sell their shares, since they were initially interested in long-term participation in the capital. Chairman of the Board of Directors of Grupo Fuertes Rafael Fuertes in May did not rule out that the Spanish group could increase its stake in Cherkizovo.
According to Sergei Mikhailov, Cherkizovo's general director, the agroholding today is considering various ways to increase the number of shares in free float and increase their liquidity. Among the options discussed both SPO, and direct sales of securities, the representative of Cherkizovo specified.
Senior analyst of Raiffeisenbank Natalia Kolupaeva notes that the portfolio investor in the person of Prosperity, on the one hand, provided attractiveness for minority shareholders, on the other hand, restrained the liquidity of Cherkizovo. In her opinion, the possible SPO of the group will allow it to retain the status of a public issuer and give a benchmark for the market value in the event of a possible sale of a stake to a strategic investor. The interlocutor of Kommersant, who is familiar with the situation, says that the shareholders of the group have already met several potential investors to discuss options for cooperation with entering the capital: such meetings were in particular with the Russian Direct Investment Fund and with the Japanese corporation Mitsui & Co.