INTERVIEW - Kazakh juice producer plans investments in RF

/REUTERS, Almaty, Tatyana Seroshtanova, December 23, 05/ - RG Brands, which estimates its stake on Kazakhstan market at 10%, hopes to sell a shareholding to European bank for reconstruction and development, Kayrat Mazhibayev chairman of the board of directors said. He says RG Brands also plans business-expansion to Russia's market. In year 2006 the company plans to borrow for investment projects about $55 m. as bonds for 7-8 years and with the volume of KZT5 bn. and credits for $15-18 m. Mazhibayev has not informed about the number of shares, which can be purchased by EBRD. "We are now in an active negotiation process. We would not like to limit EBRD much, and they have own wishes", - he said. "Anyway regardless of the size, we'd like to see EBRD's representative in the board of directors of RG Brands". Mazhibayevа says RG Brands examines the possibility of public offering of its shares on western markets in 2007-2008. "Yes, we plan a public offering of shares of RG Brands JSC in the second half of 2007 - first half of 2008. Place of offering will depend on market's conjuncture", - he said. The only shareholder of RG Brands is Resmi Group Ltd, which belongs to two individuals, including Mazhibayev. RG Brands's governing body comprises two independent directors. Company's shares, which are in Kazakhstan stock exchange's official "A" listing category, are not traded on local market. EXPANSION TO RUSSIA RG Brands expects a 45% growth of sales volume by the results of 2005 compared to last year to $140-145 m. "In 2006 there an idea to exceed $200 m., i.e. get about 50% of sales growth", - Mazhibayev said. "We'd like to get in top ten by sales volume and capitalization and be the first or second in Central Asia", - Mazhibayev said. RG Brands's net profit in year 2004 grew to KZT992 m. ($7.4 m.) from 208 m. one year before, assets grew to KZT10.4 bn. from KZT6.8 bn. in 2003. Today 90% of RG Brands's sales falls to the stake of Kazakhstan, however the company hopes to go to neighboring countries. "I think we have ripened to make direct investments in Russia's market", - Mazhibayev said. "Within the next three years we plan to increase our stake on neighboring markets to 25%. Growth, of course, due to Russia", - he said. "I don't mean a direct export. Possibly, business in Russia - by purchasing assets, which will provide sale of Kazakhstan products", - Mazhibayev said. "Up to $30 m...will be spent for purchasing businesses both in Kazakhstan and on neighboring markets", - Mazhibayev said. "We don't hope to buy big companies. We'd like to buy small companies, but with big potential for growth", - he said. [2005-12-23]