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EY Ukraine advised Farm Invest Corporation on sale of agribusiness

22/ 05/ 2018
  KYIV, 22 MAY 2018. EY Ukraine advised Farm Invest Corporation on financial and legal matters in the course of its sale of a crop raising business in Ukraine. EY Ukraine professionals were involved in rendering services in the course of sale of 100% of shares of Shpola-Agro Industry crop raising business and its entire infrastructure and equipment in Cherkasy oblast. The transaction advisory services included searching for the most competitive potential buyer, pre-sale legal restructuring of assets, consulting on transaction restructuring, preparing transaction documentation, supporting during negotiations and signing the agreement. Compensation of 15.9 million USD was paid for the 100% of shares of the agribusiness with the land bank of about 8,500 hectares of rented land. Large Ukrainian agriholding Lebedyn Seed Plant (Agricultural Limited Liability Company “LNZ-AGRO”) acted as the buyer. This transaction reaffirmed the interest of large companies in expanding and strengthening their positions in the most dynamic and attractive for investments – since 2008 economic crisis – agricultural industry of Ukraine. Mr. Frederic Chavigny, whose interests in the deal were represented by EY, noted: “I decided to attract EY since it is important for me that the deal should be supported by the most prominent professionals in the market. Sale of a business is always a complex process, especially in Ukraine. EY team represented by Mykola Korol, Bohdan Malnev and Andrii Pryimak demonstrated a high level of professional knowledge and skills. Additionally, the EY team was in touch with me all the time. I was provided with qualitative and professional support, therefore the process of the sale went fast. I sold only a part of my business and I am now planning to focus my efforts on the international development of ASPRIA Seeds (Research, Development and Marketing). To that end I decided to attract EY as a business consultant.” Mykola Korol, Associate Director, Transaction Advisory Services, served as the leader of the EY Ukraine consultants team. EY Ukraine Law associates supported the deal under the supervision of Senior Manager Bogdan Malnev and Partner, Law Leader Albert Sych. Manager Andrii Pryimak made a huge contribution to the project as well. “This landmark deal in the agricultural industry of Ukraine is another confirmation of the leading position of EY as a professional M&A consultant in Ukraine. This is the third deal on sale of agricultural assets we have closed in recent 10 months after the sale of “Agro Invest Ukraine” (a part of Serbian MK Group) to one of subsidiaries of Kernel for $43.3 million USD in July last year and sale of “Obolon Agro” to “Agroholding 2012” (belongs to “Epicentr” building hypermarket network owners) for $20 million USD in January this year. Despite the crisis our M&A team has in a few recent years successfully closed 10 deals in different sectors of the economy of Ukraine and our Law Practice advised on 20 deals”, – commented Mykola Korol, Associate Director, Transaction Advisory Services, EY Ukraine. “Our clients mark undoubtful benefit of attracting EY as a provider of complex M&A advisory services and legal support and in so doing gaining from an integrated approach to transactions support thanks to effective cooperation between the teams”, – added Bogdan Malnev, Senior Manager, EY Ukraine Law. ––– About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Contacts Olga Danchenkova, Senior PR Specialist, EY Ukraine +380 (44) 490 30 00, (067) 659 56 59 Olga.Danchenkova@ua.ey.com

KYIV, 22 MAY 2018. EY Ukraine advised Farm Invest Corporation on financial and legal matters in the course of its sale of a crop raising business in Ukraine.

EY Ukraine professionals were involved in rendering services in the course of sale of 100% of shares of Shpola-Agro Industry crop raising business and its entire infrastructure and equipment in Cherkasy oblast. The transaction advisory services included searching for the most competitive potential buyer, pre-sale legal restructuring of assets, consulting on transaction restructuring, preparing transaction documentation, supporting during negotiations and signing the agreement.

Compensation of 15.9 million USD was paid for the 100% of shares of the agribusiness with the land bank of about 8,500 hectares of rented land. Large Ukrainian agriholding Lebedyn Seed Plant (Agricultural Limited Liability Company “LNZ-AGRO”) acted as the buyer.

This transaction reaffirmed the interest of large companies in expanding and strengthening their positions in the most dynamic and attractive for investments – since 2008 economic crisis – agricultural industry of Ukraine.

Mr. Frederic Chavigny, whose interests in the deal were represented by EY, noted: “I decided to attract EY since it is important for me that the deal should be supported by the most prominent professionals in the market. Sale of a business is always a complex process, especially in Ukraine. EY team represented by Mykola Korol, Bohdan Malnev and Andrii Pryimak demonstrated a high level of professional knowledge and skills. Additionally, the EY team was in touch with me all the time. I was provided with qualitative and professional support, therefore the process of the sale went fast. I sold only a part of my business and I am now planning to focus my efforts on the international development of ASPRIA Seeds (Research, Development and Marketing). To that end I decided to attract EY as a business consultant.”

Mykola Korol, Associate Director, Transaction Advisory Services, served as the leader of the EY Ukraine consultants’ team. EY Ukraine Law associates supported the deal under the supervision of Senior Manager Bogdan Malnev and Partner, Law Leader Albert Sych. Manager Andrii Pryimak made a huge contribution to the project as well.

“This landmark deal in the agricultural industry of Ukraine is another confirmation of the leading position of EY as a professional M&A consultant in Ukraine. This is the third deal on sale of agricultural assets we have closed in recent 10 months after the sale of “Agro Invest Ukraine” (a part of Serbian MK Group) to one of subsidiaries of Kernel for $43.3 million USD in July last year and sale of “Obolon Agro” to “Agroholding 2012” (belongs to “Epicentr” building hypermarket network owners) for $20 million USD in January this year. Despite the crisis our M&A team has in a few recent years successfully closed 10 deals in different sectors of the economy of Ukraine and our Law Practice advised on 20 deals”, – commented Mykola Korol, Associate Director, Transaction Advisory Services, EY Ukraine.

“Our clients mark undoubtful benefit of attracting EY as a provider of complex M&A advisory services and legal support and in so doing gaining from an integrated approach to transactions support thanks to effective cooperation between the teams”, – added Bogdan Malnev, Senior Manager, EY Ukraine Law.

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About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Contacts

Olga Danchenkova, Senior PR Specialist, EY Ukraine

+380 (44) 490 30 00, (067) 659 56 59

Olga.Danchenkova@ua.ey.com

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