The British Salic UK Limited, Daughter Company of SALIC (Saudi Agricultural & Livestock Investment Company), and Mriya Farming PLC have completed sale-purchase procedures for most of agricultural assets of Mriya Group. This has been reported by the agroholding’s Press Office.
According to the release, the bargain comprehended all infrastructure objects, technical depot, and the companies entitled to rent land plots. The amount and conditions o the bargain were not unveiled.
“Upon the transaction conclusion Mriya is going to continue its operational activities in Ukraine jointly with the SALIC’s daughter company Continental Farmers Group (CFG). Both companies will complete the season as separate businesses and in the current configuration”, says the press release.
Further on Mriya and CFG will set on preparing the assets integration and joint business strategy development under control of Director General Simon Cherniavsky and Board Chairman Mark Leard. The companies plan to present the joint business strategy in spring 2019.
“During the transaction signing on 12 September 2018 the new owner of Mriya declared his intention to invest considerable funds in new equipment, infrastructure, agri-techniques and land bank consolidation”, was mentioned in the report.
Earlier Anti-Monopoly Committee of Ukraine had permitted the British Salic UK Limited to acquire controlling shares of the Mriya agroholding’s eleven enterprises.
Mriya’s advisers on the transaction preparing, as well as creditors on the agroholding’s debt restructuring came Rothschild & Co (France), ICU, FinPoint (both Ukraine) and the law firm Hogan Lovells (the UK).
Mriya is a vertically integrated agro-industrial holding founded in 1992 by Ivan Guta, its land bank embraces 165,000 ha, elevators and storage capacities – 380,000 t.
In August 2014 Mriya announced some $9M percentage interest overdue and about $120M pending debt on account of its financial obligations. The total debt to all creditors with account of guarantees issued to companies affiliated with Guta family amounted to $1.3Bn.
In February 2015 the operative control of agroholding was transferred to creditors who elected new management, and in September 2016 the agroholding’s creditors and bond-holders committees agreed upon restructuring conditions of the company’s debt portfolio counting $1.1Bn. The debt operation ended up in August 2018 resulting in reduction of Mriya’s total debt from $1.1Bn to $309.5M, $49.3M of which being the restructured secured debt, $208,1M restructured non-secured debt (Eurobonds), $46M working capital and $6.1M new leasing programs to purchase equipment.
SALIC (Saudi Agricultural & Livestock Investment Company) was founded in 2012. Its only shareholder is State Investment Fund of Saudi Arabia. The company’s activities are dedicated to investments in agriculture and livestock breeding in countries being highly competitive in promotion of foodstuffs production and their accessibility for export markets. The company focuses on the twelve product categories: wheat, barley, corn, soybeans, rice, sugar, vegoils, green forage, red meat, dairy products, poultry and aquaculture.
CFG works in Ukraine since 2006, processes 45,000 ha in Lviv and Ternopil Regions.
https://ports.com.ua/news/saudovskaya-araviya-zavershila-pokupku-agrokholdinga-mriya