(1888PressRelease)
October 07, 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.
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