A rally on Russia's leading grain company Razgulay's stock continued on the MICEX-RTS stock exchange on Thursday on news that national development bank Vnesheconombank (VEB) may buy a stake in the company, according to market data.
Razgulay stock grew by 5.3 percent to 35.16 rubles per share as of 12:45 p.m. Moscow time (08:45 GMT) on Thursday after a 27.8 percent leap on Wednesday.
VEB may get 16.8 percent of Razgulay shares from the company's new share issue in exchange for restructuring its debts, Kommersant business daily reported on Wednesday.
The new share issue may be worth 843.6 million rubles ($28 million). The agribusiness’s debt to VEB stands at about 19 billion rubles ($630 million). VEB intends to buy into Razgulay by writing off some of the company’s debts and restructuring its portfolio of loans extended to the agribusiness.
Razgulay Board of Directors Chairman Rustem Mirgalimov has said the company was also holding talks with other investors to buy the agribusiness’ new share issue.
The company has no overdue debts and its total liabilities amounted to 30-31 billion rubles as of the end of 2011, Kommersant reported.