Ovostar placing 8% of stock among institutional investors
KYIV. May 23 (Interfax) - Cyprus-based Prime One Capital Ltd., the majority shareholder in Ukrainian agri-industrial group Ovostar Union, intends a partial placement of some 8% of shares among institutional investors and to put the proceeds into buy the same amount of stock in a new issue by Ovostar Union N.V., the group's holding company, at the same price.
A company exchange statement says plans call for placing up to 520,000 new shares. If demand outweighs the placement, Prime One Capital might sell an additional 2%.
Ovostar intends to use the proceeds form the stock placement for financing a new investment program. This program will also be financed with the group's own monies and bank loans.
According to the Ovostar website, Prime One Capital currently holds 75% of Ovostar Union charter capital and the Polish fund Generali Otwarty Fundusz Emerytalny (Generali OFE) 12.15%. Ovostar Union owns 99.99% of LLC Ovostar Union (Ukraine). Prime One Capital is controlled by Ovostar's senior executive director, Boris Belikovy, and board of directors chairman Vitaly Veresenko.
The statement says that under the agreement with the deal's agent, Dom Maklerski BZ WBK SA (Poland, formerly the lead manager for the group's IPO), all the stock that will belong to Prime One Capital after the deal will be blocked during six months' time.
Ovostar is one of the top producers of eggs and egg products in Ukraine.
Ovostar Union had its initial placement of 25% of shares on the Warsaw Stock Exchange last summer, raising $33.2 million.
