Cherkizovo Group has decided not to proceed with an earlier planned secondary public offering (SPO) on the Moscow Exchange.

The largest vertically integrated meat and poultry producer in Russia said, due to current market conditions, it would not be a good time to proceed with an offering of its ordinary shares.

In explaining the decision, Sergei Mikhailov, CEO of Cherkizovo, commented: "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 realizing 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.

“We demonstrated our commitment to delivering value to our shareholders through sustained growth in earnings and our existing dividend policy. Cherkizovo continues to make excellent progress in implementing its strategy and we believe that our medium- to long-term outlook is strong. We remain committed to continuing to deliver significant value to our shareholders and maintaining high standards of corporate governance and transparency. We appreciate the time investors have taken to evaluate our business and the interest shown to date."

About Cherkizovo Group

Cherkizovo encompasses seven chicken manufacturing complexes (as well as the Belaya Ptitsa production complex which it operates pursuant to a lease agreement), 16 pork farms, five meat processing plants (and an additional meat processing plant operated by an equity associate Samson – Food Products) and two slaughter facilities, nine animal feed plants, 12 grain elevators, a land bank and a full-cycle turkey production plant in Tambov, owned and operated as a joint venture with Grupo Fuertes, a leading Spanish agriculture and food company.

According to the Poultry International Top Companies survey, Cherkizovo is Russia’s largest poultry company and shares the No. 6 spot with MHP among European poultry companies. It is also Europe’s 20th largest feed company.