AgroGeneration disposed of 28.5 thou. hectares of farmland for EUR 19 mln

AgroGeneration announced the signing of agreements for the sale of agricultural lands in Zhytomyr and Ternopil districts, in western Ukraine.

These sales represent a total of 28,500 hectares of harvested lands (27% of the Group’s total hectares) and a sale price of approximately EUR 19 million. This price includes land lease rights and biological assets whereas machinery and inventory will be part of a separate sale.

After the completion of these transactions, AgroGeneration will operate approximately 80,000 hectares of land in Ukraine with close to 10,000 hectares in the West (Lviv) and 70,000 hectares in the East (Sumy and Kharkiv).

Learn more: Top 100 Latifundists of Ukraine

Due diligence, which could lead to a price adjustment, should be finalized by the end of February 2019. A prepayment has already been made to AgroGeneration for approximately 15% of the total price and an equivalent amount will be placed into an escrow account for a maximum period of 9 months after completion of the due diligence.

In addition, while the company suspended its ORNANE program, end November 2018, after having drawn down EUR 4 million out of a total of EUR 20 million, the company will thus generate cash and reduce its operating financing needs.