Segezha will not hold SPO - Yevtushenkov

ST. PETERSBURG. June 7 (Interfax) - Segezha Group forestry holding, the timber-industry asset of AFK Sistema , will not hold an SPO owing to the situation on the market, though the option to recapitalize the company has not been ruled out in general, Vladimir Yevtushenkov, Sistema founder, said in an interview with RBC.

"No, we will definitely not hold an SPO, because the market is not in the best condition," Yevtushenkov said.

Segezha could recapitalize using the group's funds or some other financial instruments, he said.

Segezha said at the end of May in reporting to International Financial Reporting Standards that it had reduced net debt 8% to 133.6 billion rubles during Q1 2024. Net debt/LTM OIBDA had fallen to 12x from 13x on higher estimated LTM OIBDA. Total debt grew 3% to 136.9 billion rubles and 93% of it was ruble-denominated.

Segezha said at the end of May that it was negotiating debt restructuring with banks, hoping to be granted a grace period and extension of maturity. Segezha CFO Anton Rozhkov said a decision to tap share capital to reduce the debt burden, for example, through an additional share issue, had not yet been made. Banks buying into the company is not being considered during the restructuring process, he said.

Segezha Group held an IPO in April 2021, raising 30 billion rubles. AFK Sistema currently holds 62.2% of the company's stock an members of the board of directors and management board hold 4%; the free float is 24.25%.