Financing the project
PAVA plans to finance development of the new strategy through a mix of debt and equity capital, actively seeking international strategic and financial partnerships. The funding campaign is effected in several stages, and the company has streamlined its structure to create optimal conditions for investment.
Russian Agricultural Division together with Grain Processing Division (Grainvest – an SPV for production of high value added wheat ingredients) have been consolidated under GlobalAgro holding company. Within this structure, there are opportunities for investing either in a separate project, or the whole vertically integrated holding.
The ongoing private placement of RAD shares is viewed the first stage of attracting capital. In spring 2009, PAVA started talks with potential investors, willing to cede a minority stake (up to 40%) of RAD equity.
The Company believes that strong potential for investment returns on land and foodstuffs will forward successful public offering, which would finalize the campaign.
Investors may obtain more detailed information on a business of RAD by contacting the Company management, who are willing to hold personal meetings at the investor convenience.