Agrokultura Completes Asset Swap with MHP

Comments

Transcription

Agrokultura Completes Asset Swap with MHP
Agrokultura Completes Asset Swap with MHP
Agrokultura AB (“the Company”), the owner and operator of farmland with agricultural
operations in Russia and Ukraine, announces a material asset swap with MHP SA (LSE:
MHPC).
Agrokultura has completed a swap agreement with MHP whereby Agrokultura swaps a large
proportion of its Ukrainian land bank in exchange for the Voronezh (Russia) operations of
MHP.
The deal is a pure swap of assets with no cash adjustments and is based on equal working
capital. Agrokultura has contributed approximately 60,000 ha of leased land in Ukraine
together with 90,000 tonnes of grain storage capacity. In return it has received 40,000 ha of
mostly owned land together with 225,000 tonnes of grain storage capacity in Voronezh,
Russia neighbouring Agrokultura’s operations in Voronezh.
Managing Director Stephen Pickup commented;
“This transaction is very positive for Agrokultura. The land bank and storage assets in
Russia are situated close to existing operations and will be well suited to growing high
margin sugar beet. The farms are well equipped with modern machinery and the transaction
will increase strategic storage assets which were lacking in our Russian business up to this
point.
We still wish to remain in Ukraine where we have spent the last two years restructuring the
operation into a profitable business. We are left with 9,000 ha of land in the Lviv region and
will look to further develop the operation as attractive opportunities arise.”

Similar documents