The Antimonopoly Committee of Ukraine has permitted Luxemburg-based KSG Agro to buy three agricultural companies – Vesna Farm Ltd., Dniproagroprogress and Dniproagrostandard (all based in Dnipropetrovsk region) with the total land bank of some 10,000 hectares, reads a posting of KSG Agro on the Warsaw Stock Exchange (WSE) issued on Thursday.

"During our IPO on the WSE we promised to expand KSG Agro's land bank by 20,000 hectares by late 2011. This acquisition is the first step… the other 10,000 hectares will be bought by the end of the month," the company said, citing KSG Agro Board Chairman and a majority shareholder Serhiy Kasianov.

The report says that after the acquisition of the above-mentioned companies, the company's land bank will expand to 43,200 hectares.

"The company is considering the expansion of fields by 20,000 hectares by the end of the year," he added.

KSG Agro said that all of the land plots that will join the company are fertile land located near the key assets of the company. Grain crops have been sowed on the fields and the holding will soon revise its financial indicators and plans.

According to the document, the Antimonopoly Committee of Ukraine on June 1, 2011 issued a permit to KSG Agricultural and Industrial Holding Limited (the Cypriot subholding of KSG Agro) and KSG Agro's Ukrainian subsidiary PUAH No. 2 Limited to buy 100% stakes in all of the three companies.

KSG Аgro is one of the largest vertically integrated agricultural groups in the Dnipropetrovsk region, working in almost all segments of the agricultural market, including the production, storage, processing, and sale of agricultural products.

The company includes eight farming companies that process over 33,000 hectares in Dnipropetrovsk, Kharkiv and Kherson regions. The company also has storage facilities to store some 30,000 tonnes of grain, as well as vegetable and fruit storage facilities.

In 2010 the revenues of KSG Agro were $15.6 million and its net profit was $10 million. The company expects that in 2011 its net profit will reach $20 million and income $27 million.

In the middle of April the company conducted an IPO on the WSE, placing 33% of shares worth $39.6 million.