AB Linas Agro Group sold IOOO Belfidagro, a company registered in Belarus
AB Linas Agro Group has sold Belfidagro IOOO, a Belarusian registered company, acquired more than a year ago as part of KG Group. The buyer and the transaction amount are undisclosed by the parties' agreement. AB Linas Agro Group owned 89.09% of the total share capital of IOOO Belfidagro.
A preliminary agreement for the sale of the company was signed on 25 August. The deal was subject to the approval of the Belarusian competition authority MART (Ministry of Antitrust Regulation and Trade), which was received in early November.
IOOO Belfidagro is active in the production and wholesale of premixes and had 53 employees at the end of October. The company's revenue for the financial year ending in June was EUR 15.35 million, and equity was EUR 2 million.
Over a year ago, AB Linas Agro Group became the owner of several companies in Russia and Belarus by acquiring KG Group. The two Russian companies were sold together with IOOO Belfidagro in August for a total amount of EUR 7.5 million.
‘We cut our last ties in Russia in August by selling companies, but we still have one unsold company in Belarus. We decided to exit Russia and Belarus in February as a matter of urgency, no longer looking for good options, so the last eight months have been quite stressful - exit processes take a long time due to artificial barriers.
The sale of the three companies will not significantly impact the results of Linas Agro Group - we expect a loss of approximately EUR 3 million. The value of assets and liabilities will decrease by EUR 20.7 million and EUR 8.9 million, respectively. We will provide a more detailed financial assessment in the company's first quarterly reports for the 2022/2023 financial year,‘ said Mažvydas Šileika, CFO of AB Linas Agro Group.
A buyer is still expected to be found for Belarussian OOO KLM, a wholesale company selling agricultural inputs, veterinary supplies, premixes, and seeds, with 64 employees at the end of October. The company's revenue for the financial year ending in June was EUR 16 million, and its equity totaled EUR 1.2 million.
‘The further along, the more complicated the sales procedures become. We are looking at various options to exit Belarus. We are not alone in managing the company - our effective shareholding is 62.37%, and we have to coordinate steps with another shareholder, ‘ said M. Šileika.
AB Linas Agro Group is the Baltics' largest agricultural and food production group, comprising 68 subsidiaries and two associates. Their overall headcount was 4.9 thousand at the end of October. The group operates along the entire food production chain from the field to the table: the company’s subsidiaries produce, process, and market agricultural and food products and provide goods and services to farmers.
The financial year of AB Linas Agro Group commences on 1 July. The company's consolidated revenue for the financial year 2021/2022 went up 101% to EUR 1.9 billion, and net profit was boosted by 444% to EUR 77 million.
For more information, contact:
Mažvydas Šileika
CFO of AB Linas Agro Group
Mob.
