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SSA - AFK Sistema PAO News Story

$6.72 -0.0  -0.7%

Last Trade - 02/12/21

Mid Cap
Market Cap £2.43bn
Enterprise Value £10.06bn
Revenue £7.43bn
Position in Universe 278th / 1783

UPDATE 1-Bonum Capital to up stake in Russia's Segezha after forestry asset sale

Mon 11th October, 2021 9:19am
(Adds details, quotes, background)
    By Katya Golubkova
    MOSCOW, Oct 11 (Reuters) - Russian forestry group Segezha
 SGZH.MM  has agreed to buy the Inter Forest company from Bonum
Capital investment company for $515 million in a deal that would
increase Bonum's stake in Segezha, Bonum said on Monday.
    Segezha's forest resources will increase to 16 million
hectares under the deal and its annual allowable cut almost
double to some 24 million cubic metres as the company aims to
narrow the gap with global rivals such as International Paper
 IP.N .*:nL2N2NL0NH 
    The transaction, which Segezha plans to finance via a 25
billion rouble ($349 million) bond issue and funds from its
April initial public offering, would help it to create a
Siberian asset cluster.  
    "This will enable us to expand our geographical footprint
and strengthen our offering of high-value-added products to
end-customers, including in the fast-growing Chinese market,"
Segezha president Mikhail Shamolin said in a separate statement.
    After selling Inter Forest, a company with 24 forestry
assets in Russia's Siberian regions of Irkutsk and Krasnoyarsk,
Bonum would use $150 million to buy Segezha shares from its
controlling shareholder Sistema  AFKS.MM , Bonum said,
increasing its stake in Segezha to around 13%.
    Segezha shares were up 4.9% at 0745 GMT, while shares of
Sistema were trading 2% higher. 
    "In line with global trends around sustainability and
combating climate change, we are strong believers in the outlook
for the global forestry sector and see enormous potential for
investment in Russian forestry assets," Murat Aliev, Bonum's
owner, said in the statement. 
    Segezha, with assets in Russia and paper packaging plants in
Europe and Turkey, may consider a European listing at the end of
next year or in early 2023, an executive told Reuters last
     ($1 = 71.6519 roubles)

 (Reporting by Katya Golubkova, additional reporting by Olga
Editing by Louise Heavens, Kirsten Donovan)
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