Russian meat producer Cherkizovo Group has announced that it does not plan to proceed with an offering of its ordinary shares on the Moscow Stock Exchange, citing 'current market conditions'.
In March, the group said that it was planning the offering, which would 'provide investors with an opportunity to participate in the growth and returns of a leading consumer-oriented food company with some of the strongest poultry and processed meat brands in Russia’.
In a statement, Cherkizovo Group chief executive Sergei Mikhailov said that while feedback from investors and the market "generally was supportive of Cherkizovo’s compelling story, the current capital markets environment does not appear to be conducive to realising our objectives of creating a broad, liquid market for our shares at a valuation which we believe reflects the strength of our market leadership position, operating performance, dividend potential and the attractive potential we see in our business."
Mikhailov added that the company continues to make "excellent progress" in delivering its growth strategy, adding that the medium- to long-term outlook for the business is strong.
"We remain committed to continuing to deliver significant value to our shareholders and maintaining high standards of corporate governance and transparency," he said. "We appreciate the time investors have taken to evaluate our business and the interest shown to date."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
