Ukragrocom and Hermes-Trading intend to complete the purchase of Inter-Contact-Agro LLC and Start (both based in Kirovohrad region) worth $5.6 million by May 30.
According to a report on the group’s website, the purchase of the companies is carried out within the framework of increasing the land bank to 120,000 hectares. Two agribusinesses manage more than 6,500 hectares of agricultural land in Kirovohrad and Odesa regions.
The group of the companies Ukragrocom and Hermes-Trading are part of an agricultural corporation specializing in production of grain and oilseeds, breeding pigs and cattle.
The group currently leases about 114,000 hectares of land, has five elevators with a total capacity of 353,000 tonnes of grain, a dairy farm, and a sugar plant.
Cattle stock at the farms is 6,000, pig numbers about 11,000 animals.
According to the unified state register of legal entities and individuals, the ultimate beneficiary of Inter-Contact-Agro and Start is the largest shareholder and the chairman of the board of directors of Kernel agricultural holding, Andriy Verevsky.
The revenue of Inter-Contact-Agro in 2017 decreased by 16.7%, to UAH 30.92 million, and net loss by four times, to UAH 4.28 million. Data for 2018 are not yet available.