RGI Sells USD81 mn in Shares to Synergy Classic
OREANDA-NEWS. July 13, 2010. RGI announced that Synergy Classic Limited exercised its option to buy USD 81mn in shares in addition to the USD9 mn shares that it had previously purchased, reported the press-centre of OTKRITIE Financial Corporation.
View: The pricing at USD 2.5/share was favorable, reflecting a 25% premium to current market prices. The proceeds are likely to be used to finance the first phase of the Kingston mass market housing development, which has an estimated budget of USD 50mn. RGI intends to begin construction on the Kingston project later this year.
Valuation and action: RGI trades at P/NAV of 0.47x, versus 0.52x for its Russian peers. We see the news as positive for the company. At present, we do not cover the stock.