Kernel finalizes acquisition of UAI

5 June 2017

According to the statement on the web-site of Kernel it acquired 92% of Ukrainian agri-holding with 190k ha land bank and 200k tons of storage facilities. Name of the holding is not disclosed, though according to previous information it is Ukrainian Agrarian Investments.

For 100% stake in UAI Kernel is to pay USD 155M in cash (previous owner - Russian investment company Renaissance Capital). It is also announced that at the moment Ukrainian Agrarian Investments have positive net working capital in excess of USD 30M. UAI have been relatively low-cost grains producer, having lower than average cost per 1 ha and lower vs. peers yields.

As a result of acquisition land bank of Kernel will increase from current 390k ha up to more than 580k ha. Also Kernel is close to finalize acquisition of another Ukrainian agri-holding Agro-Invest (part of Serbian MK Group), which will allow the company to increase it land bank by additional 40k ha.

As a reminder in Y2017 the largest Ukrainian sunflower oil producer and exporter already issued USD 500M Eurobonds, launches the project of its Chernomorsk (Illichevsk) grains port terminal expansion (from 4M tons of transshipment capacities per year up to 8M tons) and mulls over selling of its share (50%) in Russian Taman port terminal (joint project with Glencore).

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