On Wednesday, the share price of Kernel, one of Ukraine’s largest agricultural groups, jumped by 26.7% on the Warsaw Stock Exchange, reaching the highest trading volume since mid-December last year.
According to the Warsaw Stock Exchange’s website, the shares rose from PLN10.49 to PLN13.30 at the opening of trading, with some deals being made at PLN13.90 per share.
As of 17:00 in Warsaw, the turnover reached 283.62 thousand shares, and the value of the transactions amounted to 3.50 million ($877 thousand at the current exchange rate).
Minority shareholders, who have united against the delisting plans and the earlier additional share issue, suggest that such activity may be related to the purchase of shares by the majority shareholder and the company’s CEO, Andrey Verevsky, to reach the 95% threshold and demand their mandatory redemption. However, there is no official confirmation of this information.
As reported, Verevsky’s Namsen increased its stake from 41.3% to 74.05%, or 62 million 222.46 thousand shares, as part of the share buyback announced in March 2023 for the further delisting of the agricultural holding from the Warsaw Stock Exchange: On May 12, Namsen bought back 30 million 248,449 thousand shares at a price of PLN18.5 per share (approximately $4.47 at the then exchange rate), which brought the total buyout price to approximately $136.1 million, while the company’s 2007 IPO was held at a price of PLN24.
During the over-allotment initiated by Wierewski in August 2023 among qualified investor shareholders, Namsen acquired another 212 million 634,916 thousand shares for a total over-allotment of 216 million shares. The purchase price was $0.2777 per share, for a total value of approximately $59.1 million, and the transaction was completed on September 1. The over-allotment shares are held in registered form and will not be admitted to trading on any stock exchange, Kernel said.
After the announcement on August 22, 2023, of the start of the pre-displacement and until September 15, the share price fell from PLN13.74 to a historic low of PLN6.34.
Subsequently, in November, Namsen acquired another 1.2 million shares in the company, or 0.4% of the total number, at a price of $1.875 per share, which, including treasury shares, increased Verevsky’s stake to 94.37% of the voting shares.
On March 21, Kernel’s shareholders’ meeting will consider reducing the company’s share capital by canceling 2.2%, or 6.602 million treasury shares owned by its subsidiary Etrecom Investments Limited. It is specified that as a result, the number of shares will be reduced to 293 million 429.23 thousand, and the share capital – to $7 million 748.29 thousand. In case of cancellation of treasury shares, the share of CEO Verevsky through his Namsen Limited will increase from 92.30% to 94.37%.
Minority shareholders have announced plans to challenge the move with the Luxembourg regulator and in the courts. On November 17, private investor Pavlo Boyko said that a group of investors was working with law firm Brucher Thieltgen & Partners. According to him, more than a thousand investors from all over the world have united, “from the smallest to 1 million shares.” The court will preliminarily consider the first lawsuit on March 18.
Before the war, Kernel was the world’s largest producer of sunflower oil (about 7% of global production) and the world’s largest exporter (about 12%). It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in the cultivation and sale of agricultural products.
Kernel’s net profit for FY2023 amounted to $299 million, while the company ended the previous year with a net loss of $41 million. The agricultural holding’s revenue for FY2023 decreased by 35% to $3.455 billion, but EBITDA increased 2.5 times to $544 million.
Dynamics of the exchange rate of hryvnia to U.S. Dollar in 2022-2023
Source: Open4Business.com.ua and experts.news
Presidents of Ukraine and Montenegro Volodymyr Zelenskyy and Jakov Milatovic discussed regional security issues and coordinated cooperation between the two countries on international platforms in Tirana as part of the Ukraine-Southeast Europe Summit, the press service of the Ukrainian president reports.
“In the framework of the Ukraine-Southeast Europe Summit in Tirana, President Volodymyr Zelenskyy met with Montenegrin President Jakob Milatovic,” the press service of the Ukrainian president said on Wednesday.
The President of Ukraine expressed gratitude for the Montenegrin side’s support for the Vilnius Declaration of the Group of Seven and the Ukrainian Peace Formula, and informed the Montenegrin president about preparations for the first Global Peace Summit in Switzerland. Zelenskyy spoke about the joint architecture of Ukraine’s efforts to restore a just and lasting peace.
“The leaders coordinated cooperation between the two countries on international platforms,” the press service said.
Zelenskyy also thanked Montenegro for sheltering Ukrainians who were forced to flee their homes due to the full-scale Russian invasion. The parties discussed the treatment and rehabilitation of Ukrainian soldiers in Montenegro.
Ukraine has received $760 million in grant funds from Japan and Norway, Ukrainian Prime Minister Denys Shmyhal has announced.
“The funds were received through the World Bank’s PEACE in Ukraine mechanism. They will be used to cover the priority expenditures of the state budget,” Shmyhal wrote in a telegram on Wednesday.
According to him, in 2024, Ukraine expects tangible financial support from Japan. “We have held many talks on this issue in Tokyo and obtained significant results. I thank our partners for their unconditional support,” Shmyhal wrote.
Albania is planning to open its embassy in Kyiv in the near future, Ukrainian Foreign Minister Dmytro Kuleba said after talks with his Albanian counterpart, Igli Hasani.
“During my first visit to friendly Albania, I met with Minister Igli Hasani. I thanked Albania for its strong support and solidarity with Ukraine. We identified ways to strengthen cooperation in the defense sector, paying special attention to artillery ammunition. Albania plans to open its embassy in Kyiv in the near future. I highly appreciate this decision, which will significantly strengthen our bilateral ties,” Kuleba wrote on social network X.
He also thanked Albania for its willingness to join the Core Group of the Special Tribunal for the Crime of Aggression against Ukraine.
In addition, the ministers noted effective cooperation within international organizations.
Since the beginning of the full-scale invasion, the Research and Production Enterprise ENERGO-PLUS has been involved in humanitarian initiatives and has been helping the Ukrainian military. The Kremenchuk energy company provides military units with vehicles, necessary equipment and machinery. The total amount of assistance since the beginning of the full-scale invasion is more than UAH 8 million.
The funds were used to purchase VOLKSWAGEN TRANSPORTER T5 and Mercedes-Benz VITO vans, as well as Renault Duster, NISSAN NAVARA, MITSUBISHI L200 cars and SUVs and three FORD RANGER vehicles. We also spend money on fuel and lubricants, as well as maintenance and repair of vehicles.
Another area of the company’s charitable activities is providing the military with equipment, tools, office equipment, etc. A separate part of the initiative is the purchase and delivery of 5 generators, which are an important element for power supply at the front line.
– Today, each of us must bring our country closer to victory. Ukrainian soldiers risk their lives every day for the sake of Ukraine’s independence, and we, joining our efforts, are obliged to help them,” emphasizes Yevgeniy Korf, Director of RPE ENERGO-PLUS LLC.
“The humanitarian direction is no less important, because at the beginning of the invasion, thousands of people needed shelter. Therefore, the company also joined the initiative of the Trust and Assistance Charitable Foundation to build a shelter for temporarily displaced persons.
The company’s core business is the design, development, and implementation of industrial automation, power supply, and various electrical systems for Ukrainian enterprises and private companies.
