Russian Timber Group plans IPO in London to attract about $200 million

Oct 19, 2007. /Lesprom Network/. Russian Timber Group (UK) which conducts operations in Russia announced its intention to go with IPO at AIM in London and thus attract about GBP 100 million ($200 million). IPO is scheduled for the beginning of November 2007. Citibank was chosen as coordinator and book-runner. The most of proceeds received will be used to develop company’s business in Russia and the rest for the settlement of obligations. Russian Timber Group and its subsidiaries own rights for exploitation of 2.4 million hectares in Russian Federation. It also possesses four sawmills in Russia and another one in Kharbin (China). Long-term license allows the company to harvest annually up to 3.3 million cubic meters of timber. Russian Timber Group (earlier - Tynda Forest Holdings Limited) was created in 2004 by the founders of mining companies Peter Hambro Mining plc and Aricom plc Peter Hambrow and Pavel Maslovskiy. In 2005 the company acquired major interest in OAO LPC Tyndales, in 2006 – OAO LPKH Taezhny (both companies are located in Amur region of Russia). In March 2007 RTG bought Hupex Forest Assets Management Limited and its license for logging in Irkutsk region as well as Chinese Heilongjang Far East Forest Co. Ltd. engaged in harvesting at Far East.