Segezha Group Holding announced debt reduction after additional issue

The Segezha Group timber holding company has raised 113 billion rubles as part of an additional share issue, the company's press service reported.

According to the holding, the company's debt will be reduced threefold, and now Segezha Group will be able to achieve an operating profit.

The additional issue of Segezha Group was attended by the holding's largest shareholder, AFK Sistema, and a number of external investors, including key creditors. Sistema expressed confidence in the success of Segezha Group's business and announced that the corporation would retain a controlling stake in its share capital. AFK Sistema believes that the company has all the prerequisites to achieve consistently high operational results, and the deal itself was called significant for the entire timber industry as a whole.

The additional issue was completed in full — all shares stipulated by the placement decision were successfully placed among investors. The funds received as a result of the additional issue will be used to repay Segezha Group's debt, which will decrease to 60 billion rubles. Thus, the company will significantly reduce interest payments, be able to focus on successful development and further achieve operating profit.