Agromino completed the sale of Novomirgorodskiy Elevator
Agromino A/S announced that following the press release of 29 January 2018 concerning the signing of the share purchase agreement for the sale of its Ukrainian subsidiary — PrJSC Novomirgorodskiy Elevator, the company had successfully completed the transaction, having received the purchase price of USD 2.6 million.
As a post-transaction arrangement the parties agreed that following settlement of accrued outstanding account receivables and payables related to the business operations of the elevator prior to the completion of the transaction, the purchaser of the elevator will remit to the company the corresponding funds in the amount of approximately USD 101 thousand not later than 1 April 2018.
“For two years now the strategic plan has been to focus on core assets and strengths, the sale of the elevator is consistent with this plan in that not only does it remove a potential reconstruction liability from our asset portfolio but also releases capital that can be put to work more effectively in our core farming business," Simon Boughton, the CEO of Agromino A/S, commented.
Note: the cash proceeds from this disposal will enable the company to reduce its bank borrowings by USD 2.3 million, thus strengthening the balance sheet and lowering the interest costs.