UGC Board names Summa Group as strategic investor
United Grain Co. (UGC) has selected Summa Group as its strategic investor, the UGC press release said.
The Board of Directors of OJSC United Grain Company following the recommendations of its adviser Troika Dialog unanimously decided to hold issuance of new shares in favor of Investor Ltd. (member of Summa Group), who offered the highest bid, and recommended to the General Meeting of shareholders to increase the authorized capital of UGC by placing additional shares by closed subscription to stock in favor of Investor Ltd.
Investor Ltd. offered RUB 5.951 billion for a block of stock of 3,514,939 shares of UGC (50% minus a share). After the new shares issuance the state-owned stake in the authorized capital would reach 50% plus one voting share.
"One of the main strategic objectives of UGC is the qualitative development of the grain market infrastructure that will strengthen the international position of Russia's export grain. According to our calculations, the handling of grain in the south of our country can be increased by 7-8 million tons a year, in the Far East – by 10 million tons / year. We have an understanding of what it needs, it corresponds to the UGC’s strategy," President of Summa Group Alexander Vinokourov said, commenting on the decision of the Board of Directors of United Grain of Russia.
In the near future, Summa in conjunction with UGC will develop a plan of actions, which could allow them to achieve these goals in the shortest possible time.
OJSC United Grain Company is the Russian State Agricultural Company, established in accordance with the decree (No 290) of the Russian President on March 20, 2009 for infrastructure development of the country’s grain market, the implementation of the export potential of Russian grain on the world market, trade and procurement of grain on the domestic market. As a contribution to authorized capital of United Grain Co. the Russian Government transferred stakes of 30 companies located in 18 Russian regions.
Summa Group is a diversified holding, combining assets in the port logistics, engineering, construction, telecommunications, in oil and gas sectors. The Group’s companies are present in almost 40 Russian regions and abroad. The founder and shareholder of Summa Group is Ziyavudin Magomedov.