Cherkizovo Group has reached an agreement with Grupo Fuertes to become the single owner of Tambov Turkey.
Tambov Turkey was formed as a joint venture between Russia-based Cherkizovo and Grupo Fuertes of Spain in 2012. It’s first stage was launched in 2015 and in 2017 it started offering Pava-Pava branded products, including chilled chopped meat and ready-to-cook products.
Each company presently owns a 50% stake in Tambov Turkey. In consideration for this stake, Cherkizovo offered Grupo Fuertes its new shares from an additional issue of 10,261,753 shares registered on March 15, 2021. According to the transaction terms, AIC Mikhailovsky, part of Cherkizovo Group, will buy a stake in the additional issue during the public offering, which will further be handed over to Grupo Fuertes in exchange for its stake in Tambov Turkey.
Cherkizovo’s Board of Directors will decide on the price of the share offering on December 15. The price will be based on the market value of shares.
According to a press release from Cherkizovo, in becoming the sole owner of Tambov Turkey, it can manage the turkey company more easily and will be better able to strengthen its position in the growing turkey market in Russia.
Since its inception, Tambov Turkey, according to Cherkizovo, has grown to become the second largest turkey producer in Russia.
In 2020, it produced 57 thousand metric tons of live-weight meat. In the summer of 2020, the second stage of Tambov Turkey was launched to increase its total annual capacity to 85 thousand metric tons of turkey meat.
Tambov Turkey was recently honored at the 23rd Product of the Year 2021 official ceremony in Moscow. Pava-Pava products began being sold in recyclable packaging earlier this year.
The legal side of the transaction is handled by Cleary Gottlieb. The companies expect to complete the deal in the first quarter of 2022, after obtaining an approval from Russia’s Federal Anti-Monopoly Service.
Following the completion, Grupo Fuertes' stake in Cherkizovo Group will go up. Currently the Spanish company’s share in Cherkizovo’s authorized capital is 8.58 %.
Cherkizovo, according to the Poultry International Top Companies survey, ranks as the world’s 28th largest poultry producer, and the largest in Russia.
