Konkur Investments Limited, a subsidiary of SigmaBleyzer, has entered into a conditional agreement to sell its 56.90% stake in Ukrainian agroholding AgroGeneration to Ukrainian group of companies Novaagro.
AgroGeneration said in a statement that it is about the sale of 126.1 million shares at a price of $0.036 per share and repayment of Konkur’s debt on current operations in the amount of approximately $3.191 million.
It is noted that the completion of the transaction is subject to the approval of the transaction by the Antimonopoly Committee of Ukraine and the buyer obtaining adequate sources of financing for the acquisition.
“Given the significant instability in Ukraine, including the ongoing war, a date for completion of the transaction cannot be determined at this stage,” the statement said.
Under current French law, completion of the transaction should result in a change in the composition of AgroGeneration’s Board of Directors and trigger a mandatory public offer by Novaagro to acquire all AgroGeneration shares not already owned by it.
The price per share in the said public offer will be determined on the basis of the price per share paid for the transaction with Konkur (and taking into account the repayment of debt) and confirmed by an independent expert’s valuation report.
It is also mentioned that on July 26 a request for suspension of the listing of AgroGeneration, whose shares were listed on Euronext Paris under the ticker ALAGR, was filed. Their exchange rate on July 26 was EUR0.05 per share, whereas before the full-scale invasion the shares were quoted at up to EUR0.3, and more than a decade ago at up to EUR2.5 apiece.
It is noted that investment firm SigmaBleyzer has helped manage AgroGeneration for the past 10 years.
As reported, AgroGeneration group of companies in 2022 reduced its land bank to 30 thousand hectares from 56 thousand hectares due to Russia’s full-scale invasion of Ukraine, and received about $19 million in losses due to crop losses, damage to machinery and infrastructure, reserves, resources and other assets.
AgroGeneration was founded in 2007. The company’s land bank before the Russian military invasion amounted to 58 thousand hectares in Kharkiv region, and at the end of last year it was reduced to 30 thousand hectares due to the Russian invasion. The holding company includes seven companies after the operational restructuring carried out in the third quarter of last year in connection with the war. The point of the restructuring was to dispose of “toxic” assets with 25 thousand hectares destroyed or severely damaged due to the war, located near the Russian border, the retention of which would require more than $50 million.
AgroGeneration’s 2022 revenue fell 41.1% from pre-war 2021 to EUR25.854m and its net loss was EUR31.595m compared to a net profit of EUR14.202m a year earlier.
According to the annual report, the agroholding’s gross loss last year amounted to EUR5.608m against a gross profit of EUR32.361m in 2021, while war losses were estimated at EUR15.448m.
The company’s total debt at the end of last year was estimated at EUR18.065m, down from EUR24.599m a year earlier, while assets were valued at EUR36.391m, down from EUR82.033m a year earlier.
According to a presentation from March this year, the agroholding employs about 400 permanent staff. Last year’s harvest amounted to about 80 thousand tons of grain and oilseeds, the machinery fleet includes 33 combines and 92 tractors, storage capacity – 95 thousand tons, including two elevators.
According to the data on the website of the group of companies, 56.9% of its shares belong to Konkur Investment Ltd holding, which is part of the international investment company SigmaBleyzer, 3.3% – to Green Alliance/Gravitation holding controlled by Charles Begbeder (France), 39.8% of its shares are in free circulation.
SigmaBleyzer is based in Houston (Texas, USA) and has been operating private investments in Ukraine for over 25 years.
Novaagro Group has been operating in agribusiness on the Ukrainian and international markets since 2009. It consists of four operating companies specializing in trading, export of grain and oilseeds; cultivation; warehousing; production and sale of mixed fodder, wheat flour and granulated bran, chicken meat.
“Novaagro owns five elevators with a total capacity of 326,600 tons of one-time storage. The group has a feed mill in Chkalovskoye settlement (Kharkiv region), which produces 200-300 tons/day of products. It also has an oil extraction plant with a capacity of 180,000 tons/year.
The group includes the Nova poultry complex (Kharkiv region), which has three production sites with a capacity of 845,000 birds. The slaughterhouse has a capacity of 3,000 heads per hour.
According to the Unified State Register, the ultimate beneficiary of Novaagro Limited is Sergiy Polumisny.
SigmaBleyzer investment company has announced the creation of a new International Fund for Ukrainian Energy LP (IFUEL) for $250 million, which will focus on investments in the energy sector of Ukraine. “We will consider everything, including alternative energy. But, of course, we are interested in oil and gas, energy saving,” SigmaBleyzer President Michael Bleyzer told Interfax-Ukraine on the sidelines of the 15th YES forum organized by the Victor Pinchuk Foundation in Kyiv. According to the company, during the first closure, which took place in September 2018, more than $100 million has already been approved.
“SigmaBleyzer cooperates with highly-capitalized and very experienced energy companies in Texas to create this fund,” the document says. Bleyzer added that for investment of funds both greenfield, and brownfield projects can be considered. According to him, significant potential is concentrated in energy saving projects, as the level of energy efficiency in Ukraine lags behind the best world indicators.
SigmaBleyzer is based in Houston (Texas). It has been operating private investments in Ukraine for more than 25 years. Since its creation, SigmaBleyzer has implemented more than 100 investments in a wide range of sectors, including power generation, cable television, food and beverage, agriculture, and retail.
