Kernel to acquire Agro-Region Group — sources

Kernel has reached an agreement to acquire the Agro-Region group of companies, two informed market sources told Latifundist.com.

According to the sources, the parties have agreed on the key terms of the transaction and are now moving to formal regulatory procedures. A publication by the Antimonopoly Committee of Ukraine granting permission for the concentration is expected in the near future. Latifundist.com has asked the AMCU to specify the status of the request.

“The deal has effectively been completed; what remains are formal procedures,” one of the insiders said.

Another source noted that this is Kernel’s second attempt to acquire Agro-Region since the start of the full-scale invasion. During the first round of negotiations, the parties failed to reach an agreement on the price.

According to Latifundist.com interlocutors, the transaction provides for the acquisition of the entire company, including corporate rights, land bank, machinery, and grain storage assets.

Taking into account the geography of the assets and land quality, land brokers surveyed by Latifundist.com estimate the indicative deal range at USD 100–110 million (including corporate rights, fixed assets, and grain elevators).

Kernel’s press service said in response to Latifundist.com’s inquiry that it was not ready to comment on the matter at that time.

According to YouControl, the main beneficiaries of Agro-Region via GARNA STOCKHOLM HOLDING AB are Aivaras Abromavicius (over 53.6%) and Lars Peter Elam Håkansson (44.28%). The company has a land bank of 41,000 hectares. Its regions of operation include Kyiv, Chernihiv, Zhytomyr, and Khmelnytskyi oblasts. Agro-Region also owns the following elevators:

• Boryspil Elevator: storage capacity — 76,000 tons; intake capacity — 6,100 t/day.
• Myropillya Elevator: storage capacity — 55,000 tons; intake capacity — 3,000 t/day.
• Zavorychi Elevator: storage capacity — 30,000 tons; intake capacity — 1,200 t/day.