4 May 2010 11:45

Sberbank looks to get Rusagro shares for $200 mln in IPO

MOSCOW. May 4 (Interfax) - Sberbank of Russia has bid for $200 million worth of Rusagro shares in company IPO that could run from $245.5 million to $309.2 million total.

Renaissance Capital informed its clients about Sberbank's bid. It, Sberbank, Credit Suisse and Alfa Bank are the IPO organizers, the Vedomosti business daily writes. Sberbank is prepared to buy Rusagro shares "at any price within the price range," an employee at one of the organizers told the paper.

The holding set the price range for the IPO placement of common at $13.5-$17 per share. The price will be determined May 13.

Whether Sberbank's bid will be met "will depend on the distribution of shares after all bids are received," because "there can be no certainty the bank will receive paper for the entire indicated amount," Vedomosti cites a Renaissance Capital statement as saying.

Sberbank of Russia is by far Rusagro's biggest creditor, accounting for 90% of the agricultural holding's credits as of April 1. The bank holds 50% of LLC GK Rusagro, which controls the group's assets, shares, the real estate and production capacity of five of seven of the group's sugar plants and the hog complex Belgorod Bacon, a memorandum to the IPO says.

Rusagro found Vadim Moshkovich was a minority shareholder in Sberbank.

Rusagro shareholder Matchzone Holdings Ltd will place the shares. The company plans to sell investors up to 18,188,742 shares, meaning IPO volume will run from $245.5 million to $309.2 million.

Matchzone will use some of the proceeds to subscribe to 11,377,909 additional Rusagro shares. Thus, the company will reap $153.6-$193.4 million from the IPO.

Rusagro is a major producer of sugar, packaged margarine and mayonnaise, and has Russia's fifth largest hog complex, along with integrated businesses that grow sugar beet and other agricultural crops, and controls roughly 360,000 hectares of land. It has 35 agricultural enterprises, seven sugar plants, OJSC Zhirovoi (Fats) Combine in Yekaterinburg, and a number of trading branches. Its sugar, crop farms, and hog facilities are sited in the Belgorod, Tambov and Voronezh regions.