Rosava Elaborates On 2009 IPO Plans

According Roman Naumenko, Director of Ukraine’s largest tire-maker Rosava (ROSA), the company plans to integrate its related companies into a vertically integrated holding before holding an IPO in 2009. Vladimir Nesterenko: The financial position of the companies mentioned above is currently quite weak, while their interest bearing debt is substantial. We estimate that to repay at least USD 70 mln of loans, the future holding will need to place more than 1/2 of its shares, unless the financial performance of its constituents improves. It looks like the owners would benefit more from strategic acquisition rather than from a public placement.