AgroGeneration sold 9.2 thou. hectares of farmland in Sumy region

AgroGeneration announced the signing of a new agreement for the sale of agricultural lands in Sumy region, 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 pct of the Group's scope at 31 December 2018, for a total price of approximately EUR 25 million, which includes lease rights and biological assets. 85 pct 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 nine months.

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"These disposals aim at strengthening cash position and reducing the operating financing needs and costs," the message says. 

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 informed its shareholders that the majority shareholder SigmaBleyzer had initiated a strategic review of all its investments, including that of AgroGeneration.

As previously reported, AgroGeneration started spring field works 2019 in the Vinal Agro enterprise.