Barnaul, Russian Federation (PressExposure) February 11, 2009 -- Agricultural company RAD, the subsidiary of PAVA, has said it plans to offer up to 40% of its shares to finance future development. In February, the company, investing in arable land in several Russian regions, started talks regarding a private placement.
Earlier Russian Agricultural Division announced its intent to grow the land holdings up to minimum 500,000 ha by end of 2010, with the land bank today standing at over 160,000 ha. Funds will be allocated to support further land acquisition, purchasing new machinery and large-scale cultivation - the latter being based on intensive farming techniques which combine western agronomist expertise with local knowledge.
Galina Balaenkova, PAVA International Business Development and IR Director, has commented that despite the instability of the global financial structure, the plans to enter international capital market remain in place. "Our current dialogue confirms the willingness of investors to re-examine their portfolios towards more secure assets. Markets are subject to change, but availability of land and foodstuff has always been a general concern which now is far from waning".
PAVA, the company employing 2,500 people and operating 3 milling plants, is one of major grain processors and the leading exporter of the national flour industry. It was the first company in Russian food and agribusiness sectors to make a public offering in 2005, and is now being quoted on domestic exchanges - RTS and MICEX. RAD was set up to consolidate and expand its farming companies which will forward the company's move to vertical integration.