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. Last Updated: 07/27/2016

Russian Timber Delays IPO

Russian Timber Group, the country's second-largest wood harvester, has postponed its initial public offering, citing a "difficult investment climate," CEO Leo Hambro said in a statement Tuesday.

"We believe that even in a difficult environment the Russian forestry and wood products sector has great promise and remains a fundamentally attractive investment proposition," Hambro said.

London-based London Timber last month said it would raise about ?125 million ($258 million) by selling shares at 90 pence to 110 pence. The final price was due to be announced Tuesday.

Russian Timber Group, which now leases approximately 2.4 million hectares, was established in 2004 by Peter Hambro and Pavel Maslovsky, the founders of gold mining company Peter Hambro Mining. The company sells the majority of its timber to export markets in Asia and Europe.

Russian Timber Group is not the first company to have postponed its IPO because of tough market conditions. RusAl, majority owned by Oleg Deripaska, said in September that it was delaying its much anticipated IPO "indefinitely," citing hardening market conditions. It had been expected to list this year.

In July, Rosneft postponed a multi-billion-dollar issue after finishing a roadshow, citing volatility of global credit markets.

Bloomberg, MT