MOSCOW, January 9 (RIA Novosti) – Russia’s state-owned investment bank VEB has increased its stake in the agro-business holding Razgulay by an additional 16.8 percent for a total of 19.97 percent, VEB said without disclosing the terms of the deal.
A Razgulay source previously told Prime News the company would raise additional capital to reduce its debt.
Razgulay raised 1.1 billion rubles ($36.20 million) in an additional share emission with a nominal value of 96 million rubles in August 2012.
Russian media reported in February 2012 that VEB could acquire a 16.8 percent stake in Razgulay following an additional share issue by the company, in return for Razgulay restructuring its debts. At that time the company owed VEB 19 billion rubles and had a total debt of around 31 billion rubles.
Razgulay is one of Russia’s largest agro-business holdings, including sugar and cereals production and storage facilities. It also controls over 400,000 hectares of agricultural land.