OREANDA-NEWS. On July 22, 2008 Open Joint Stock Company Razgulay Group ("Razgulay" or the "Company") announced the closing of its follow-on offering, reported the press-centre of Razgulay Group.

A total of 38,093,157 new shares were placed as part of the offering, out of which 12,725,978 shares were placed with pre-emptive rights holders and 25,367,179 shares were placed under open subscription. Total proceeds from the offering amounted to US295,2 million.

The Company intends to use the proceeds from the offering to finance its growth plans for the business and repay part of its outstanding indebtedness and, in particular, to fund potential acquisitions of agricultural land, to fund selected acquisitions, to acquire agricultural machinery and to modernize production and processing facilities.

The Company expects to file the notification of the results of the new share issuance with the Federal Service for Financial Market on 22 July 2008.

JPMorgan and Renaissance Capital acted as Joint Global Coordinators and Bookrunners of the offering. VTB Capital acted as Co-Lead Manager.