New turn in big merger of APO harvesters in Russian Far East

The end of October 2006 General Meeting of shareholders of Kamchatka-based major APO combine OKEANRYBFLOT plc has not approved the $300 million deal for the giant to take over several other leading pollock quota holders of the Russian Far East.

Thus the huge consolidation of the assets previously reported by some media sources is still to happen.

The company was planning to finance the purchase of shares of NBAMR plc and JSC Roliz by taking a $300 million loan in the Icelandic Landsbanki but the loan was not approved either.

However it is obviously a delay rather than collapse of the plan because the meeting has approved the merger subject to the total value of the deal of $200 million. The value of the collateral has also been scaled down to about the same sum.

Recently the Russian FINANCE magazine claimed that OKEANRYBFLOT has been acting in the interests of the Hong Kong Pacific Andes Group, however there is no direct mentioning of the company in the list of the affiliated persons.

Besides, one of the persons with a large pack of shares in control Mr. Igor Yevtushok is simultaneously holding position of President of the Association of Alaska Pollock Harvesters of the Russian Far East. The organization has proclaimed the goal of making a single price and marketing policy on foreign markets objectively to collide with the interests of the Hong Kong giant should it be behind the projected acquisitions.