One of the largest Russian meat producers, the Cherkizovo group, decided to postpone the SPO on the Moscow stock exchange, which was planned to be held in May. The reason is high volatility in the securities market. The decision could be influenced by new US sanctions, which scared off participation in the placement of shares of Russian companies by foreign investors.
Group Cherkizovo decided to postpone the placement of ordinary shares on the Moscow Stock Exchange, the company said today. The reason is high volatility in the securities market. Previously, SPO was planned for the company in May. As the general director of Cherkizovo, Sergei Mikhailov, plans to place shares were positively received by the stock market, which confirms interest in the company from investors. However, current market conditions can significantly affect the success of the transaction, despite the group's good fundamental performance, he said. "We will continue to monitor the development of the situation in the capital markets in order to spend the placement at a more favorable time, when investors will be able to fully appreciate the investment attractiveness of Cherkizovo," promised Mr. Mikhailov.
Cherkizovo is one of the largest producers of poultry meat, turkey, pork and meat products in the country. The Group's revenue in 2017 increased by 10%, to 90.5 billion rubles., Net profit increased by 202%, to 5.8 billion rubles. The main owner (82.52% stake) is MB Capital Europe Ltd of the family of the founder of the group Igor Babaev.
Cherkizovo announced plans to hold an SPO on April 3. Part of the package investors planned to offer MB Capital Europe. Another 6.63% of shares will be sold by Cherkizovo itself. In total during the SPO the company could attract about $ 300 million. Joint global coordinators and bookrunners of the deal are Goldman Sachs, JPMorgan and Sberbank CIB, they have not yet been able to receive their comments.
The fact that Cherkizovo may postpone the SPO on the Moscow stock exchange, Kommersant reported last week (see Kommersant on April 19). According to Kommersant sources in investment circles, the delay is related to the next package of anti-Russian sanctions announced by the US Treasury on April 6 in response to the "various malicious activities of the Russian Federation," which caused the sale of assets in the Russian financial market. One of the interlocutors of Kommersant said that about 70% of the shares that Cherkizovo intended to place during the SPO were to be offered to non-residents. But foreign investors were scared off by new anti-Russian sanctions, he said. After the announcement of US sanctions, Cherkizovo postponed the board meeting twice, at which the SPO issue was to be considered. Initially, the meeting was to be held on April 13, but then was postponed to April 17, and the last time - on April 26. The interlocutors of Kommersant believe that Cherkizovo will postpone the SPO at least until the fall.
By 12:30 the shares of Cherkizovo on the Moscow Stock Exchange fell by 2.78% to 1.05 thousand rubles. for a paper, the group's capitalization reached 46.16 billion rubles.