FirstFarms A/S signs Letter of Intent about purchase of the share capital in AIC A/S (Agricultural Invest Company)
FirstFarms A/S and the owners of AIC A/S has signed a Letter of Intent regarding FirstFarms A/S’ purchase of AIC A/S.
AIC A/S is a holding company, whose main asset is the Romanian company AISM srl., which owns 2,430 hectares of cultivated leased agricultural land in Romania, a modern silo plant with 6,000 tons storage capacity, feed mill and storage- and office facilities. The transaction structure is not yet final determined.
It has been agreed, that the owners of AIC A/S will be paid with shares in FirstFarms A/S. In this connection, it is intended, that the owners of AIC A/S will receive 1,198,500 new shares in FirstFarms A/S, and also a conditional receivable corresponding to the value of 50,000 shares at the time where the receivable is to be settled.
The 1,198,500 new shares are planned to be issued by a capital increase at minimum market price in accordance to the authorisation to the Board of Directors in FirstFarms A/S’ Articles of Association.
The receivable must be settled on delivery of the shares or cash 15 months after closing, to the extent that no guarantee claims have been made beforehand.
If the transaction is carried out according to the above, the owners of AIC A/S will hold 16.5 percent of the shares in FirstFarms A/S, as a result of the transaction.
A timetable has been agreed for the implementation of due diligence and the further process with negotiations and conclusion of agreement.
The transaction is expected to be completed at the latest in second quarter of 2020, and is the transaction carried out according to the signed Letter of Intent, the purchase is expected to contribute with a positive result in the current financial year.
The expected purchase of the share capital in AIC A/S, is partly to support FirstFarms’ overall strategy and positive development, and partly as a part in the development of the company’s activities in Romania.
“This is primarily an investment in land and storage capacity. The land prices in Eastern Europe are increasing, and with this purchase we invest in land and stock of very good quality with a range of potential applications. The purchase provides opportunity to scale and optimise the operation and to make better use of our competences in Romania. In addition, with the seller's entry into the shareholder circle, we gain access to important knowledge and experience, which we will understand to utilise for increased value creation in our entire business, ”says CEO of FirstFarms, Anders H. Nørgaard.
Chairman of the Board in AIC A/S, Bendt Wedell, gives reason for the expected sale to FirstFarms as follows: ”FirstFarms has fully demonstrated that they are capable of operating and developing agriculture in Eastern Europe. The foundation is good, the economy is good, and there is an ambitious plan for the future. As a larger shareholder, we want to contribute actively to the continued positive development – both in a broad sense and on specific areas.”
Best regards,
FirstFarms A/S
For further information:
Please visit our website or contact CEO Anders H. Nørgaard on telephone .
About FirstFarms A/S:
FirstFarms is a Danish stock exchange listed company, which purchases and operates agriculture in Eastern Europe. We develop the individual farms to modern businesses that deliver milk, meat and grains of the highest quality to the consumers’ dinner tables. FirstFarms contributes to, and approves, the development towards a more sustainable agriculture.
About AIC A/S:
Since 2005, AIC A/S has made investments in Romanian agricultural land and built up a crop centre. The company rents out the owned land and trades with crops, with base from Satu Mara in Romania. AIC A/S is owned by Bendt Wedell, Anders Kirk Johansen and Ulrik Theophil Jørgensen.
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