Russian aquaculture

PJSC Russkaya akvakultura is engaged in production of an Atlantic salmon and trout in Russia and also distribution of the cooled and fresh-frozen fish and seafood. Key activities the company calls commodity cultivation of an Atlantic salmon in the water area of the Barents Sea in Murmansk region and a trout in the lakes of Karelia; a segment of distribution of the cooled and fresh-frozen fish. Now the company possesses the rights to 29 sections for cultivation of a salmon and a trout. The total amount of potential cultivation on these sections is about 70 thousand tons of red fish.

Activities

For July, 2014 JSC Russkaya akvakultura Group works in two segments: distribution and aquaculture, i.e. cultivation of fish. In the first segment for the first half of the year 2014 the company increased sales volume by 3% up to 74.1 thousand tons, in the second sales volume was 870.7 t whereas only 19.8 t were sold for the first half of the year 2013.

In general for January-June, 2014 revenue of Russkaya akvakultura Group made, according to the company, 9.1 billion rubles that is 16.2% more in comparison with the same period of 2013.

Owners

For June, 2014 according to the last published list of affiliates, 60.94% of stocks of the company fall on RSEA Holdings Limited which on the parity rights belonged Vorobyova and Timchenko, 8.8% — belong to Liudmila Vorobyova, 11.1% — to Mikhail Kenin, 5.3% — to Dmitry Kotsyubinsky and 0.5% — to the CEO of group Dmitry Dangauer. A part of actions is in free circulation.

History

2011: Timchenko buys 30% in the company from Maxim Vorobyov

Gennady Timchenko's structures received 30% in "The Russian sea" in 2011. It was reported that Timchenko purchased a share of the company at Maxim Vorobyov for 1.6 billion rubles.

It is the vertically integrated company working in three main directions:

• production of finished fish goods (Russian Sea company),
• delivery of the cooled and fresh-frozen fish and seafood ("The Russian fish company"), aquaculture ("The Russian sea – the Aquaculture").

For March, 2011 the group has more than 30 offices and branches in the territory of the Russian Federation. Total number of personnel is more than 2,000 people.

2013: Sale of refinery capacities

In 2013 "The Russian sea" sold the refinery capacities (JSC "Russian Sea" with all trademarks and processing plant in Noginsk) the German-Belarusian company "Santa-Bremor", transaction amount was estimated at $52 million.

2014

Purchase of two ships

In June, 2014 for the solution of own logistic tasks of the international transportation of forages for a salmon and whitebaits and decrease in dependence on the Norwegian partners the company purchased two ships for $11 million.

Timchenko sells 30% in the company to the son-in-law Frank

In July, 2014 it became known that Gennady Timchenko sold fish business in Russia. As reported to Izvestia the source close to owners of Russian Sea group of companies, Timchenko is not a shareholder of the company any more, the businessman sold the part of shares to Gleb Frank. Gleb Frank is Gennady Timchenko's son-in-law, and acts as the partner in a number of his businesses. Besides Frank has friendly relations with other owner of the Russian Sea Group — Maxim Vorobyov. For July, 2014 they own equal share blocks of The Russian Sea — Production company (on 34% everyone) which is not entering into group.

The source of Izvestia characterized Frank as the professional, aware and well feeling the fish industry. Timchenko's press secretary Anton Kurevin confirmed the fact of sale of a share of "The Russian sea".

- We confirm that Gennady Timchenko sold the share in the Russian Sea Group (30%). The structures entering into Rockwell Capital investment company which is owned by the entrepreneur Gleb Frank acted as the buyer — Kurevin reported.

According to him, the transaction passed on market conditions and came to the end at the end of June, 2014. The amount which was received by the businessman during sale of an asset is not disclosed. Anton Kurevin denies introduction communication by the West of sanctions against the businessman with sale of fish business and notes that Gleb Frank was an initiator of the transaction.

— Sale is connected with Gennady Timchenko's desire to concentrate on development of the key directions of business of Volga Group, such as power, petrochemistry, logistics and infrastructure projects. Investment into the Russian Sea Group was financial for Volga Group, but shareholders actively participated in development of an asset. As a result of the Russian Sea Group passed a serious way of transformation of business and came to a new stage of development. Gennady Timchenko considers this direction of business important for food security of the country. He is glad that Gleb Frank as the investor who separates to his logician addressed with the offer on purchase of a share in the company — Kurevin said.

Gleb Frank's press service reported that he acted in this transaction as the independent investor.

— The structures entering into its investment company "Rockwell Capital" participated in the transaction. Mr. Frank is engaged in fish business long ago, it already has serious investments in this industry. He regards the transaction on entry into a group equity "The Russian sea" as perspective — noted in the press service.

Experts estimate the cost of a 30 percent share of Gennady Timchenko at several tens of millions of dollars.

- Proceeding from capitalization of the company approximately in $140 million (shares of group are traded at the Moscow Exchange, under a ticker of RSEA), Timchenko's share can cost $40 million. Considering that from the moment of purchase in 2011 the cost of the company at the exchange practically did not change, it is probable that the billionaire sold an asset approximately for the same amount, as purchased — Dmitry Rannev says, the CEO^[1].

At the same time the analyst of IFC Markets Dmitry Lukashov considers actions of "The Russian sea" underestimated, according to him, their fair price is twice higher than current.

2015

The Russian Sea group of companies announced renaming

JSC Russkoye more Group announced renaming of the company, since February 18, 2015 the official name – publichnoye aktsionernoye obshchestvo «russkaya akvakultura" (PJSC Russkaya akvakultura), said in the widespread press release of the company. Renaming is connected including with creation of the first vertically integrated company in the sector of an aquaculture in Russia, says^[2].

By 2019-2020 the company intends to increase production volume more than four times and to produce not less than 21 thousand tons of the cooled fish products for domestic market, to construct own plant on cultivation of a whitebait of an Atlantic salmon with power up to 12 million pieces of the smolt in year and the plant on production of forages with a production capacity up to 80 thousand tons a year. Additional investments into the Aquaculture project can make more than 13 billion rubles, follows from the message of the company.

Notes