Russia's leading processor and importer turns down deal with Austevoll Seafood

The shareholders of Moscow-based Russian Sea Group of Companies have turned down the earlier publicized deal with Austevoll Seafood ASA (AUSS) to sell up to 20% of the group's shares to this foreign company, according to Yarmarka.

The Letter of Intent towards the aborted partnership was signed on 9 July 2007 with the project strategically targeted at developing the group's operations in Russia. The goal should have been met based on Austevoll's longstanding experience in the international seafood trade and Russian Sea's strong positions on the market.

At present the Group's legal and financial expertise of the project has been finished with the synergy sources for the both companies having been outlined in greater detail.

The key role in making decision to turn down the deal has been played by high growth rates of Russian Sea driven by own resources. In the first half of 2007 the group's member companies JSC ZAO Russian Sea and JSC ZAO Russian Fish Company displayed the following growth of sales: by 72% to RUR1.47 billion for Russian Sea and by 88% to RUR4.92 billion for Russian Fish Company. Such positive results of the group's operations are indicative that its plans of public offering of shares in 2009 can be successfully realized. It is thought that during the initial public offering the fair value of the business will be defined, while under the current conditions private offering of the share in the capital is seen as not to the advantage of the group.