United Grain Company (OZK) has chosen Summa Group as a strategic investor

29 may 2012
Based on the recommendation of the investment advisors Troika Dialog, the board of directors of United Grain Company, OJSC made the unanimous decision on May 28 to issue additional shares of OZK on behalf of Investor, LLC (a subsidiary of Summa Group), because Investor had offered the highest price. The board of directors recommended to a general meeting of shareholders that OZK increase its share capital by making a private offering of additional shares for the benefit of Investor, LLC.

Investor, LLC offered 5.951 billion rubles for a package of 3,514,939 shares of OZK (or a 50% stake minus one share, after the additional issue of shares). After issuing the additional shares of OZK, the Russian government now has a 50% stake, plus one voting share, in OZK's share capital.

"One of OZK's main strategic objectives is to ensure the high-quality expansion of the infrastructure of the grain market in order to strengthen the international position of Russian grain. By our calculations, up to 7-8 million tons of grain per year could be shipped from southern Russia, and as much as 10 million tons from the Russian Far East. We understand what has to be done to achieve this and it fits well with OZK's business strategy. A definitive action plan will be drawn up in conjunction with OZK's management in the near future that will help meet these goals as quickly as possible. In addition, we will do what is necessary to strengthen the management team by bringing in new expertise, which includes experience trading grain throughout the world," noted Aleksandr Vinokurov, the president of Summa Group, commenting on the decision made by OZK's board of directors.

United Grain Company, OJSC
is a Russian state agricultural company, created in accordance with Russian presidential decree no. 290, dated March 20, 2009, and aimed at developing the infrastructure of the grain market, realizing the export potential of Russian grain on the global market, and actively buying and selling on the domestic grain market. As a contribution to OZK's share capital, the Russian government transferred blocks of shares of 30 companies located in 18 Russian regions.

Summa Group
is a diversified holding company for high-potential, fast-growing assets that specialize in port logistics, engineering, construction, telecommunications, and the oil and gas industry.

Summa Group's companies employ more than 10,000 people in almost 40 regions of Russia and abroad. Ziyavudin Magomedov is Summa Group's founder and principal shareholder.