United Grain Co confirms Troika as share issue consultant
MOSCOW. Dec 23 (Interfax) - Directors at OJSC United Grain Company (UGC) have confirmed Troika Dialog as the investment consultant for a supplementary share issue, which will dilute the government stake from 100% to not less than 50% plus one share, the grain trader said in a statement.
Russian President Dmitry Medvedev signed a decree on November 7 to sanction the share issue, which is the first stage of the grain company's privatization.
Sergei Levin, the grain company's general director, said in a recent interview with the Kommersant and Vedomosti newspapers that Ziyavudin Magomedov's Summa Group wanted to subscribe to the new shares and had notified the government in writing about this.
Levin told Interfax in September that Russia would privatize United Grain Company in two phases.
The first phase involves placing additional shares for private investors with the government maintaining a 50% plus one share stake. The second phase will see privatization of the entire government stake. "Before the end of next year the government shares will be fully privatized," Levin said.
The company was established in line with a presidential decree of March 20, 2009 to develop grain market infrastructure, fulfill grain export potential, and trade on the domestic grain market. The government contributed shares in 30 companies located in 18 regions to the UGC charter capital.
UGC is a government agent for grain in the government intervention fund.
Revenue totaled 9.2 billion rubles in 2010, compared to 1.1 billion in 2009. Net profit was 179.8 million rubles compared to 350.8 million rubles, respectively.