Russian Agricultural Company PAVA is about midway through its effort to raise growth capital, according to the company’s officials. Head office of the Company is based in Russia, the Altay territory. It is privately-owned, the founders being its major shareholders.
FOR IMMEDIATE RELEASE  РDecember 16, 2008
(Free-PR-Release.com)  PAVA is looking to finance development of its daughter companies – Russian Agricultural Division and Grainvest, consolidated under GlobalAgro. The new strategy of the Company is based on vertical integration, which allows to minimise risks and capture additional margins throughout the whole “field to fork” chain.
Main activities of RAD include acquisition and cultivation of land assets for growing cereal crops and their further processing. Situated in a region endowed with fertile soils and favourable climatic conditions, it has a high-growth potential. As farmland in Russia is undervalued compared to other major world production areas and prices are relatively low, there is a great opportunity to expand the business. Active purchasing of land allowed to meet the stated goals and secure more than 155,000 ha by the end of 2008. The Land Department at RAD have worked out a plan, whereby the land bank can be expanded to at least 500 000 ha.
With a view to diversify product assortment with high value-added ingredients from the wheat kernel, the Grainvest subsidiary was set up. This project has fascinating prospects, as significant gains can be made from growing demand for gluten and starches as well as for other products to be manufactured. One of the company’s flour mills will undergo expansion and facilities for deep grain processing will be constructed. Currently, PAVA is on the final stage of negotiations with a world-known engineering company.
PAVA said they already had discussions with potential investors which may become more concrete once the premarketing stage has been fulfilled. The Company’ partner European bank BNP Paribas provides expert advice on the financing scheme as PAVA is weighing different alternatives, private placement being the most likely. The first phase of raising capital is scheduled for early 2009.  PAVA will make an offering of a minor stake in RAD (10-30% of its value).
“Our company receives overtures all the time, coming from abroad as well as from Russia. We have several large agricultural projects (farming and processing), and we are happy to talk to the potential investors. Joining our efforts will enable all parties to take full advantage of the immediate potential,” ‚Äì said Galina Balaenkova, PAVA‚Äôs International Business Development and IR Director.
 
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For further information please contact:
Galina Balaenkova
PAVA’s International Business Development and IR Director
e-mail: galina.balaenkova@apkhleb.ru
phone: +7 3852 631903
 
Yulia Chebotareva
Public Relations Manager
e-mail: chebotareva@apkhleb.ru
phone: +7 3852 630155