Grain Processor PAVA Looks To Raise Capital Through New Share Issue

Barnaul, Russian Federation (PressExposure) October 06, 2009 -- Additionally to attracting funds into agribusiness operations (RAD subsidiary) and advanced wheat processing, PAVA plans to issue new shares to finance current activities. Grain processing company with a 3% market share said it would enter into strategic and financial partnerships, willing to cede a blocking stake in PAVA's equity through private placement transaction.

According to the new strategy, the company will expand the milling business and open up into new areas, increasing agricultural production and turning to the growing markets of high value added wheat ingredients. The optimized structure allows to invest either in a separate project, or in the parent company.

Currently, PAVA is operating three mills with total flour output of about 400,000 MT and owns over 500,000 MT storage capacities. The additional funds will be allocated to finance transition to a leading vertically integrated agroindustrial holding.

The company is one of the acknowledged leaders of Russian grain processing sector, with highly popular brands and rapidly increasing export potential. The government grants extensive support programme for PAVA and its projects, since it plays a major role in development of the national economy. Being oriented on both local and international growth, PAVA seeks to increase financial transparency and publishes statements based on IFRS standards.


PAVA is one of the major grain processors in Russia. The company represents a 3% share of the national flour market. According to 2007 results, it was given the status 'Leading Exporter of the Industry' by Russian Ministry of Economic Development. Recently PAVA has developed a new strategy - creation of a vertically integrated agroindustrial holding. It is based on implementation of 2 projects: RAD (agricultural business operations) and Grainvest (deep grain processing), consolidated under GlobalAgro structure.

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Press Release Submitted On: October 06, 2009 at 12:44 am
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