Russia starts privatization of state-run grain trader

2011-11-09 15:25:29

The Russian government will sell over 49 percent in state-owned United Grain Company (UGC) within six months by offering the company's new share issue to private investors, according to a decree in the government newspaper Rossiiskaya Gazeta.

In mid-October, UGC CEO Sergei Levin said the company could sell over 49 percent of its shares through a new share offering, which would almost double its charter capital. The size of the share offer depended on the appraisal of the company's value. The company could be fully privatized by 2017.

By 2015, UGC plans to boost grain exports to 16 million tons if Russia's total grain exports reach 38 million tons, expand storage capacity to 8.4 million tons and increase capitalization to 174 billion rubles ($5.8 bln).



RIA Novosti