Invesco (LSE:IVZ)
Historical Stock Chart

From Jun 2019 to Jun 2024

Russian property developer Raven Russia Ltd. (RUS.LN) said Tuesday it plans to bypass clogged credit markets and raise up to GBP125 million in equity and gain another GBP20.8 million by acquiring Raven Mount Group PLC (RAV.LN), in a bid to secure the cash it needs to continue developing its chain of warehouses stretching from Vladivostock to St. Petersburg.

Raven Russia said it intends to raise GBP125 million in preference shares and attached warrants, at 100 pence per unit.

Invesco Asset Management Ltd., a unit of Invesco Ltd. (IVZ) and Raven Russia's biggest shareholder, has already agreed to invest GBP75 million, Raven Russia said.

The company said it also intends to acquire Raven Mount for GBP57 million in shares, at a price of 0.535 of the preference share and warrant units for each Raven Mount share. Almost two thirds of Raven Mount shareholders, who include Raven Russia deputy Executive Chairman Anton Bilton and Raven Russia shareholders including Schroders PLC (SDR.LN) and Laxey Partners Ltd., have backed the deal.

These two deals will enable Raven Russia to withstand a prolonged downturn, Executive Deputy Chairman Anton Bilton told Dow Jones Newswires. Bilton said Raven Russia exhausted every available avenue to get financing, most recently approaching the European Bank for Reconstruction and Development.

"There's no more money anywhere as far as debt is concerned," Bilton said. Property companies have found it tough to raise money in the credit markets as lending tightens and real estate values plunge. In the U.K., British Land Co. PLC (BLND.LN) last week launched a GBP740 million rights issue to shore up its balance sheet. Raven Russia's approach echoes that of Alternative Investment Market peer Peter Hambro Mining PLC (POG.LN), which also operates in Russia, and earlier this month agreed terms to acquire Aricom PLC (ORE.LN), a titanium and iron ore miner it spun out of itself in 2003, in an all-share deal that would bring in $257 million in cash. Raven Russia Chief Exectutive Glyn Hirsch told Dow Jones Newswires the company intends to use its new cash to continue developing warehouse space in Russia.

He said the firm is finding opportunities to buy good assets cheaply from under-pressure sellers. It is also being invited to form potentially lucrative joint ventures with tenants who can't find the money to develop projects themselves in current credit conditions, he said. Hirsch said Raven Russia will also consider buying back its shares.

Company Web site: www.ravenrussia.com

-By Jason Douglas and Rachael Gormley, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com