THIS ANNOUNCEMENT CONTAINS INSIDER INFORMATION AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

 

 

Controlling Shareholder of Cherkizovo Group

Increased Stake

 

Moscow, Russia - 3 August 2017 - Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, today announces the completion of the purchase of Cherkizovo Group securities by its controlling shareholder.

 

The controlling shareholder of Cherkizovo Group, together with its affiliates, completed the acquisition of 21.05% of the Group's ordinary shares and GDRs from the funds and portfolios under the management of Prosperity Capital Management at a price of RUB 1,300 per ordinary share, for total consideration of RUB 12.0 billion.

 

The transaction was approved by the Russian Federal Antimonopoly Service in late July.

 

The funds and portfolios under the management of Prosperity Capital Management sold all securities of the Group previously held by them.

 

Following the acquisition, the total stake of the controlling shareholder of Cherkizovo Group, together with its affiliates in Cherkizovo Group, now amounts to 88% of the charter capital.

 

 

The person responsible for the release of this announcement on behalf of Cherkizovo Group is Dmitry Mironov (please see details below).

 

For more information please visit http://www.cherkizovo.com or contact

Cherkizovo Group

Dmitry Mironov

Head of Investor Relations

+7 (495) 660 24 40 ext. 15962

d.mironov@cherkizovo.com

 

About Cherkizovo Group

Cherkizovo Group is the largest meat and feed producer in Russia. The Group is a top-3 producer in each of the Russian poultry, pork and processed meat markets and is the largest feed manufacturer in the country.

 

Cherkizovo Group encompasses eight full cycle poultry production facilities, 15 modern pork production facilities, six meat processing plants, eight feed mills and more than 287,000 hectares of agricultural land. The Group also includes Tambov Turkey facility, a joint Russian-Spanish venture. In 2016, Cherkizovo Group produced 903,000 tonnes of meat and meat products.

 

Thanks to its vertically integrated structure, which includes grain growing and storage, feed production, livestock breeding, fattening and slaughtering, and meat processing, alongside a distribution system, the Group has delivered long-term sales growth and profitability. The Group's consolidated revenue was RUB 82.4 billion in 2016.

 

Cherkizovo Group shares and GDRs are traded on the Moscow Exchange (MOEX) and the London Stock Exchange (LSE).

 

This press release may contain forward-looking statements based on current assumptions and forecasts made by Cherkizovo Group management and other information currently available to Cherkizovo Group.