Ukrainian Industrial Milk Company has acquired three agricultural entities worth 5.3 mln USD
2011-06-20 16:34:08
IMC has finished the operation of acquisition of three Ukrainian agricultural companies located in Poltava and Chernigiv regions. Such operation allowed the company to increase its land ownership from 38 thousand hectares to 45,5 thousand hectares.
According to IMC, the price of the transaction amounted to 5,316 mln USD. It was mentioned that the company also acquired agricultural equipment, biological assets as well as storage facilities with capacity of 5 thousand tons and 1,9 thousands of cattle (including 900 milking cows). Land of the companies that was acquired is in lease for the term of 5 years.
The origin of financing of such activities is prior IPO of the company on Warsaw Stock Exchange. IMC was able to sell 24% of the shares for approximately 30 mln USD, which will be spent for increasing land ownership of the company to 126 thousands hectares until 2016. The company also plans additionally increase storage capacity for grain and oil products to the level of 285 thousand tons from current 155 thousand tons.