Russian biggest seafood group to go public posting IPO at home

After completing the restructuring all The Russian Sea Group's assets will be consolidated in OAO "The Russian Sea Group of Companies" (plc), which is to become the parent company, the main co-owner of the Group Maxim Vorobyov told Vedomosti. The public limited company (OAO) is planned to be registered in Saint Petersburg, with the documents to be filed within the next few days.

According to the mid-December report, 100% of ZAO Russian Fish Company (closed JSC) and ZAO Russian Sea (JSC) belong to the Cyprian "Corsico ltd", which is controlled by RS Group Ltd., registered at British Virgin Islands. Along with Vorobyov the Group is controlled by another 16 physical persons.

According to the website Yellow pages, at the address where it is planned to register the new company there is one of the subsidiaries of the Group - Russian Sea - Dostavka (Delivery). Tax authorities of Saint Petersburg didn't confirm this information. But the plans of the Group's restructuring are known to the managers of two banks, cooperating with the Group, said the report.

Explaining the choice of the place of registration Maxim Vorobyov has noted that Saint Petersburg is the largest logistic center. The bulk of fish and other aquatic products bought in Russia and worldwide, is transported via this city. The Group within the next three years is going to invest up to 100 million dollars in the construction of a logistic terminal, fish processing plant and office in Saint Petersburg.

In 2008 ZAO Russian Sea is to place CLN (construction loan note) worth 150 million dollars and get a syndicated credit worth 100 million dollars. As for 2009, it has been made a decision about IPO (initial public offering) at Russian Stock Exchanges. This is a new trend as opposed to the practice of operating in the offshore. To illustrate the point, the lawyer of the company "Ukov, Khrenov and partners" quoted by the report says that usually prior to IPO, the assets are transferred to offshore companies. As the Russian corporate legislation is less flexible.

However, the explanation may be furnished be the Federal Law On Introducing Amendments to FEDERAL LAW ON FISHERY AND CONSERVATION OF AQUATIC BIOLOGICAL RESOURCES and to separate legislative acts of the Russian Federation signed by President Putin on 6 December 2007. Under this law foreign businesses shall be prohibited to conduct fisheries in the waters of the Russian Federation, except for fisheries under intergovernmental agreements.