Segezha Group announced plans for additional capitalization
The Board of Directors of the timber holding Segezha Group (part of Sistema Group) at its meeting on November 20 announced the convening of an Extraordinary General Meeting of Shareholders (EGM) on the issue of increasing the authorized capital. The company intends to raise about 100 billion rubles in the course of the additional share issue and use these funds to repay its debt.
The meeting will be held in absentia, the acceptance of shareholders' ballots for voting will be held until December 26 this year.
According to the company, the additional issue will be placed by closed subscription. If the shareholders approve the plan of additional issue, Segezha Group plans to issue and place ordinary shares at a price of 1.8 rubles per unit for a total amount of up to 101 billion rubles. The proceeds will be used to repay debt.
The company also presented its financial results for the first nine months of 2024. According to the statements, revenue increased by 19% year-on-year to 76 billion rubles due to the formation of a new geography of supplies and increased sales. OIBDA also increased by 23% to RUB 8.6 billion.
According to Segezha Group President Alexander Kreshchenko, "the company's production capacity is at maximum capacity utilization", while "management continues to work on developing and improving the efficiency of the company's product portfolio, increasing market share in high-margin product segments and expanding into new regions". Debt reduction will allow the company to "financially recover the business, and together with the expected recovery of market conditions to make a qualitative leap in development, returning to the implementation of key growth projects," he added.