Parties in proposed deal to sell Russian forestry company Investlesprom to investment company Sistema are weeks away from signing legal documents, CEO of Investlesprom's owner VTB bank tells investment forum in Sochi, says Sistema will pay US$465M
September 30, 2013
– Russian investment company AFK Sistema is weeks away from signing an agreement to acquire Investlesprom from VTB Bank, an investment forum in Sochi has been told.
The CEO of VTB Bank Andrei Kostin said the parties were several weeks away from signing legal documents, according to a report by Russian news service Lesprom. It is understood that AFK Sistema will pay 15 billion rubles (US$465 million) for Investlesprom.
Investlesprom and a number of other non-core assets passed to VTB when it acquired the Bank of Moscow in 2011, according to an earlier report by WhatWood, the Moscow State University of Forestry's news service. Investlesprom's debts totaled 40 billion rubles at the end of 2012.
Lesprom noted that Investlesprom employs about 10,000 people. Its operations include the Segezhskiy paper mill in Segezha, Karelia; the Sokolsky paper mill in Sokol, Vologda region; timber homes producer Sokolskiy DOK in Sokol, Vologda region; particleboard producer Karelia DSP in Karelia; the Viatsliy plywood mill in Russia's Kirov region; lumber producers Segezhskiy LDK in Segezha, Karelia, and Onezhskiy LDK in Onega, Arkhangelsk region; and logging companies in Karelia, Arkhangelsk and the Vologda region.
The primary sources of this article are Lesprom, Moscow, on Sept. 28, 2013 with additional information from WhatWood, Moscow, Russia.