KUALA LUMPUR (May 11): PPB Group Bhd (KL:PPB) said its 18.8%-owned associate, Wilmar International Ltd, is appealing a Russian court order to seize a 24% stake in oils and fats producer JSC Etalon, indirectly owned by Wilmar.
The seizure stems from a broader Russian court ruling on May 5 for the state to confiscate a 68% stake in Rusagro plc, linked to founder Vadim Moshkovich, after he was found guilty of violating anti-corruption laws.
According to PPB's bourse filing, Wilmar stated that the seizure includes a 24% interest in Etalon held by LLC Production and Commercial Firm Profit, a Russian-incorporated company involved in the oils and fats business. The court appeared to have concluded that Profit was beneficially owned or controlled solely by the Rusagro Group, which Wilmar said was incorrect.
Wilmar said Profit is wholly-owned by Sethal Holdings Ltd, a Cyprus-incorporated company. Prior to June 2023, Sethal was an indirect 51.8%-owned associate of Wilmar before its stake was diluted to 50% after Ros Agro China Ltd, part of the Rusagro Group, acquired the remaining interest.
In 2024, Wilmar entered into an agreement with Ros Agro China, granting Wilmar an option to acquire the remaining 50% economic interest in Sethal and the right to appoint all directors of the company.
Wilmar said the carrying value of its investment in the Profit Group stood at US$310.9 million (RM1.33 billion), compared with an initial investment of US$50.6 million. However, no contribution from Profit was recognised in Wilmar’s financial year ended Dec 31, 2025.
The group said it intends to appeal against the seizure order, noting that the matters leading to the seizure occurred before the transactions involving Wilmar and were unrelated to the company.
According to reports, Russia’s Prosecutor General’s Office alleged that Moshkovich had used his position as a senator in the upper chamber of Russia’s parliament to illegally enrich himself. Moshkovich, along with his spouse and other family members, were named as defendants in the case.
Rusagro is Russia’s only major listed agriculture company and a major producer of sugar, pork, and oils and fats products.
Shares in PPB closed down 16 sen or 1.4% at RM11.04 on Monday, giving the group a market value of RM15.71 billion. Over the past year, the stock has fallen 11%.
Meanwhile, Wilmar’s shares slipped six cents or 1.6% to S$3.66 on Monday, valuing the group at S$23.44 billion. Wilmar’s stock has gained 19.6% over the past year.