Raven Russia, an AIM-traded developer of warehouses and logistics parks in Russia, has announced its plans to raise £125 million via a placing. Alongside its fundraising plans, the company intends to launch a £57 million takeover bid for property company Raven Mount Group Plc.

Raven Russia aims to raise up to £125 million through an offer of 125 million units comprising one preference share and one warrant at an issue price of £1 per unit.

The company said the fundraising would strengthen its balance sheet and enable it to take advantage of opportunities in a distressed market. Raven Mount has a healthy cash balance of £20.8 million and no debt obligations. Raven Russia will use its shares to fund the deal.

Raven Mount’s four largest shareholders – Anton Bilton, Bim Sandhu (also directors of Raven Mount), Schroder Investment Management and Laxey Partners – together have a 75 per cent stake in the business in addition to 18 per cent of Raven Russia.

Richard Jewson, chairman of Raven Russia, commented: “These two proposed transactions will transform the long-term prospects of Raven Russia. First, the refinancing will put the group in a strong financial position. This will enable it to withstand a prolonged downturn, and to take advantage of new opportunities that may emerge in a distressed market,” he added.

Raven Russia joined AIM in July 2005, raising £153 million before expenses in order to invest in the Russian property market, with an initial focus on the warehouse market in Moscow and St Petersburg.

See also: M&A activity in Russia – A fist full of cash