Saudi Arabia’s agrocompany United Farmers Holding Company (UFHC) is going to acquire 100% of the agricultural company Continental Farmers Group plc (CFG) with assets in Ukraine. The transaction has already been approved by CFG’s board. The latter recommends shareholders accept the deal, the company says in its announcement on the London Stock Exchange. According to the announcement, UFHC is ready to give 35 pence in cash for each CFG share and up to a further 2 pence of deferred remuneration (the basic offer), or 36 pence in cash. Taking into account the issue volume of 2.775 Ml shares, the company can be valued at GBP 58.2 Ml ($89.6 Ml), or GBP 59.9 Ml ($92.2 Ml) in case of the cash alternative.

The CFG management says this offer represents a 50% premium to the market price. Noteworthy, UFHC was created on March 24, 2013 by a consortium of Saudi Agricultural and Livestock Investment Co., Saudi Grains and Fodder Holding LLC and Almarai Company. In turn, CFG boosted revenues by 23% to EUR 30.7 Ml in 2012, but its net profit nearly halved to EUR 1.55 Ml. In addition, the company increased its land bank in Ukraine by 49% to 23.68 Th ha this year. Overall, taking into account land owned in Poland, it grew by 42% year-over-year to 26.12 Th ha.

UkrAgroConsult