The agricultural holding has completed two deals for land alienation and acquisition within a strategy of giving up remotely located land parcels. Kernel Agroholding sold a farm leasing 6,000 ha of land in Zaporizhzhia region, i.e. far from Kernel’s core assets, for $4.4 Ml and bought a farm with 1,500 ha in Khmelnytsky region for $1 Ml.

“Both transactions are being completed within the framework of a previously announced strategy aimed at increasing the current clusters and giving up remotely located land parcels,” Kernel notes, adding that the purchase agreement was signed on April 26 and the sale agreement on April 29. Kernel produces sugar, sunflower oil, distributes bottled oil, exports oil and grains and provides grain and oilseed elevator storage services. The company posted a net profit of $69.1 Ml in the first half of FY 2013, or down 25% year-over-year. The holding’s revenue in this period increased by 49.5% to $1.47 Bl. In early April 2013, Kernel reported the purchase of an 80% stake in a large farming company leasing 108 Th ha that will allow expanding the holding’s total land area under cultivation to 422 Th ha.

UkrAgroConsult