Media called contenders for the state-owned «United grain company»

© RIA Novosti / Alexander Krauledat in fotomontage of the grain harvest. Archival photoMedia called contenders for the state-owned «United grain company»© RIA Novosti / Alexander Krajevima the image Bank

First Deputy Prime Minister Igor Shuvalov instructed to consider the privatization of a controlling stake in «United grain company» (UGC) in favor of the group «Sum» Ziyavudin Magomedov (which owns 50% minus 1 share UGC), the funds may provide the Russian direct investment Fund (RDIF) in exchange for 10% in UGC, writes in Wednesday newspaper «Kommersant».

It is noted that, according to experts, to repurchase shares of OZK «the Sum» will need up to 14 billion rubles. The theme of privatization of state-owned UGC discussed may 18 at a meeting with Shuvalov. Following the meeting, the Ministry of economy, the Ministry of agriculture and the Ministry of Finance with participation of group «the Sum» and RDIF is mandated to determine the price of state-owned UGC and award, referred the newspaper to the minutes of the meeting.

The parties should also explore the possibility of selling the government’s stake in UGC consortium «of the Amount» and RDIF. The Fund’s share in the transaction may be 10%, specified in the Protocol. The report thereon should be submitted to the government until 20 June 2017. The representative of Shuvalov confirmed to the newspaper instructed, refusing further comment. Close to the UGC, the newspaper’s source said that the participation of the FUND in the privatization of the company may be associated with limited financial resources «of the Amount».

In «Sum,» the newspaper said they are interested in the privatization of state-owned UGC, as well as support the company’s development strategy and large scale investment program approved by the Board of Directors in 2016. It is noted that in November 2016 former CEO Marat Shaydaev said that the funding of long-term development programme of UGC to 2020 is estimated at 30 billion rubles.

The Ministry of agriculture, Ministry of economy and UGC are committed to June 5 to submit proposals for the transfer of functions of the state agent on carrying out of grain interventions other company referred the newspaper to the Protocol of the meeting with Shuvalov. The economy Ministry has confirmed that the issue of UGC in the development stage. In the RDIF declined to comment.

UGC’s revenues in 2016 amounted to 12 billion rubles, net profit — 2,24 billion rubles. UGC now manages more than 20 elevators and processing enterprises.