Kernel can buy assets of Ukrainian Agrarian Investments

31 March 2017

According to AgroPortal the largest Ukrainian sunflower oil producer plans to purchase assets of UAI Ukrainian agri-holding with 240k ha land bank. As a result Kernel will be the largest agricultural company by the size of its land bank in Ukraine.

Ukrainian Agrarian Investments belong to TOP-10 Ukrainian agri-companies (owner is Russian investment company Renaissance Capital). Their land bank is estimated at about 240k ha, though real sown area during last years has been slightly below 200k ha. UAI have been relatively low-cost grains producer, having lower than average cost per 1 ha and lower vs. peers yields.

Earlier we reported that Kernel planned to purchase Ukrainian agricultural assets of Glencore (which had approximately 70k ha land bank in Ukraine) and was interested in other farming assets in Ukraine. In case mentioned deals will be closed total land bank of Kernel will exceed 700k ha and it will become the largest Ukrainian farming company by the size of land bank.

As a reminder in Y2017 Kernel 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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