Olga Dergunova, Deputy Minister of Economic Development, head of Rosimushchestvo (the Federal Agency for State Property Management) held an extended interdepartmental session to address privatization of the state-owned stake in OJSC Perm Pig Breeding Complex, the regulatory body informed.
Among others, Viktor Basargin (the governor of Perm Krai), Igor Manylov (the First Deputy Minister of Agriculture) as well as representatives of the Federal Agency for State Property Management, the Ministry of Economic Development, the Executive Office of the Presidential Plenipotentiary Envoy to the Volga Federal District and the top managers of the Perm Pig Breeding Complex took part in the session.
The main issue was developing a package of effective measures to streamline the financial and economic activity of the Perm Pig Breeding Complex in the run up to its upcoming privatization.
According to O. Dergunova, privatization is still the mainstream in the joint stock company's further development, although the poor financial position impedes the hunt for strategic investors.
One of the remedies for the pig breeding complex is Governor Viktor Basargin's initiative to transfer the enterprise to the government of Perm Krai so as to improve its financial and economic activity and to increase its investment appeal, O. Dergunova pointed out. The Federal Agency for State Property Management and the regional government are preparing a package of related documents (including comments as necessary and a bailout plan attached) which will be submitted to the Central Office of Russia's Government and the Executive Office of Russia's President. The document assumes withdrawing the asset from the federal privatization schedule and transferring it to the region for further privatization.
The meeting participants made a decision to combine efforts of the region and the federal authorities to keep the pig breeding complex running, to refine the bailout plan and to enhance the management of the enterprise before mid-February.
It will be recalled that in the summer of 2012, Russia's watchdog satisfied the application of CoPITANIYA LLC (Moscow) for the acquisition of 100% of the voting shares in the Perm Pig Breeding Complex.
OJSC Perm Pig Breeding Complex is one of Russia's largest pork producers ranking 16th in the pork volume in Russia. In 2011, the company increased meat production by 4.4% to 22 thousand tonnes accounting for 89% of all the pork produced in Perm Krai. The labor force of the enterprise is more than 1.8 thousand employees. Its 2011 revenue increased by 14.4% year-on-year to RUB 1.69 billion.