Paris, 25 March 2019
The company today announces the signing of a new agreement for the sale of agricultural lands in the Sumy district, in Eastern Ukraine, covering 9,200 hectares.
This operation follows the sale of farmlands in Zhytomyr and Ternopil districts announced in January 2019.
In all, the Group sold 37,700 hectares of harvested land, i.e. 36% of the Group's scope at 31 December 2018, for a total price of approximately € 25 million, which includes lease rights and biological assets. 85% of this amount has already been cashed in by the Group, or will be in the coming weeks, the balance being placed into escrow accounts for a maximum period of 9 months.
The machinery of these farms will be redeployed within the Group to optimize operational efficiency or sold to third parties later.
These disposals aim at strengthening cash position and reducing the operating financing needs and costs. The Group will now operate on a perimeter of around 70,000 hectares. On an operational level, the 2019 crop is off to a good start. The Group fully completed its winter sowings and the seasonal financing is secured.
In addition, the Group informs its shareholders that the majority shareholder Sigma Bleyzer initiated a strategic review of all its investments, including that of AgroGeneration.
Lastly, the Group recalls that as of April 1, 2019, all outstanding OSRANEs will be fully redeemed in shares resulting in a total number of shares of circa 220 million.
Founded in 2007, AgroGeneration is a global producer of grain and oilseed. The Group is one of the top five producers of grain and oilseed in Ukraine, with close to 70,000 hectares of farmland controlled. Through the high-potential farmland it leases, the group's ambition is to meet the food challenges of tomorrow as global consumption doubles in scale between now and 2050.
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