Kernel sells part of its assets
Agro-industrial holding Kernel decided to sell part of its assets due to the blockade of Ukrainian seaports and uncertainty about the resumption of exports.
This is stated in the company’s message on the Warsaw Stock Exchange.
“Given the continued blockade of Ukrainian Black Sea ports as a result of Russia’s unprovoked military aggression against Ukraine, the board of Kernel Holding decided to sell some agricultural facilities occupying 134 thousand hectares of fields with infrastructure, machinery and working capital, to reduce business risk and improve liquidity in the medium term,” the press release says.
Kernel explained that the uncertainty of the timing and feasibility of resuming exports could lead to land sale and thus reduce future agricultural performance.
As noted, the commencement of the official asset sale process has not received significant attention from local and international players, taking into account the current operating environment and unfavorable prospects. None of the potential participants submitted proposals for the removal of assets. After due evaluation, the investment company controlled by Andrey Verevsky agreed to act as an investor of “last resort”. Kernel Holding S.A. On April 26, 2022, entered into a sale and purchase agreement for the alienation of assets in the amount of $210 million.
The completion of the transaction will take place after obtaining the consent of some of the company’s creditors and the relevant regulatory requirement.
Kernel is the world’s largest producer and exporter of sunflower oil, a leading producer and supplier of agricultural products from the Black Sea region to world markets.