Raven Russia to raise £125m

Raven Russia, an AIM-traded developer of warehouses and logistics parks in Russia, has announced its plans to raise £125 million via a placing.

Raven Russia, an AIM-traded developer of warehouses and logistics parks in Russia, has announced its plans to raise £125 million via a placing. Alongside its fundraising plans, the company intends to launch a £57 million takeover bid for property company Raven Mount Group Plc.

Raven Russia aims to raise up to £125 million through an offer of 125 million units comprising one preference share and one warrant at an issue price of £1 per unit.

The company said the fundraising would strengthen its balance sheet and enable it to take advantage of opportunities in a distressed market. Raven Mount has a healthy cash balance of £20.8 million and no debt obligations. Raven Russia will use its shares to fund the deal.

Raven Mount’s four largest shareholders – Anton Bilton, Bim Sandhu (also directors of Raven Mount), Schroder Investment Management and Laxey Partners – together have a 75 per cent stake in the business in addition to 18 per cent of Raven Russia.

Richard Jewson, chairman of Raven Russia, commented: “These two proposed transactions will transform the long-term prospects of Raven Russia. First, the refinancing will put the group in a strong financial position. This will enable it to withstand a prolonged downturn, and to take advantage of new opportunities that may emerge in a distressed market,” he added.

Raven Russia joined AIM in July 2005, raising £153 million before expenses in order to invest in the Russian property market, with an initial focus on the warehouse market in Moscow and St Petersburg.

See also: M&A activity in Russia – A fist full of cash

Nick Britton

Lexus Ernser

Nick was the Managing Editor for growthbusiness.co.uk when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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