OREANDA-NEWS. April 21, 2010. The LSR group announced a share offering of up to USD773m in the form of ordinary shares and GDRs. The existing shareholders will have pre-emptive rights to subscribe for the new shares. The price for existing shareholders may be as much as 10% lower than for other investors, reported the press-centre of OTKRITIE FC.

View: The price range is set at USD 10-11/GDR, which is at the current market price (USD 10.2). The company is planning to use the proceeds to repay a USD 300m debt, and to invest in real estate development and the general building material business. We regard the news as positive.

Valuation and Action: At present, we do not cover the stock.