25 Apr 2024 14:14

AFK Sistema does not rule out additional capitalization of Segezha, parameters not set yet - Yevtushenkov

MOSCOW. April 25 (Interfax) - The founder of AFK Sistema Vladimir Yevtushenkov does not exclude the possibility of additional capitalization of timber industry holding Segezha Group which is controlled by the corporation, but it is too early to talk about specific parameters.

"Maybe, I'll admit, but there are no specific parameters," he told Interfax on the sidelines of the RSPP Congress, answering a question about plans for additional capitalization of Segezha.

Yevtushenkov also said that the restructuring of the company's debt is being worked out as part of its financial recovery process.

Segezha presented its 2023 IFRS results at the end of March, including reporting net debt of 122.6 billion rubles. With an annual EBITDA of 9.3 billion rubles, the company's debt level topped 13x in terms of net debt/EBITDA in 2023. The company's total debt as of December 31, 2023 was 133.2 billion rubles (an increase of 6% compared to the end of the third quarter).

Segezha CEO Mikhail Shamolin said in an interview with Interfax in March that the company expects to resolve the issue with its high debt burden by the end of the year. He said that the company does not exclude additional capitalization, did not offer details as to how this could be implemented.

Segezha Group is a vertically integrated international timber industry holding that unites the logging and timber processing assets of AFK Sistema. Segezha Group held an IPO in April 2021 worth 30 billion rubles; the company has 24.25% of its shares in free float; AFK Sistema owns 62.2%, and the total share of the members of the board of directors and the management board is 4%. Charter capital is divided into 15.69 billion ordinary shares with a par value of 0.1 rubles each.