Rusagro planning capex of 15 bln rubles in 2016
MOSCOW. Nov 24 (Interfax) - Rusagro Group's capital expenditures could reach 15 billion rubles in 2016, the Russian agribusiness company's CEO, Maxim Basov said in a conference call on Monday.
Rusagro's capex will total 10 billion rubles in 2015. Additional capex on the company's project in Russia's Far East totalled 4 billion rubles.
Capex next year will depend on a number of factors, including the company's deal with Razgulay . If it buys Razgulay assets, Rusagro plans to invest in the acquired sugar refineries, Basov said. Rusagro expects that the deal to buy the assets might take place in the first half of 2016.
The final capex figure in 2016 will also depend on the implementation of the project in the Far East, where the company began to build a large pig farm this year, as well as possible acquisitions of assets. The amount of investment will also depend on the board's decision on dividends, which is expected in March.
Basov believes that Rusagro's strong balance sheet and low debt will enable the company to make major acquisitions while the market is creating opportunities for consolidation.
