AGROTON SETS ISSUE PRICE AT PLN 27 PER SHARE. SUBSCRIPTIONS FOR INDIVIDUAL AND INSTITUTIONAL INVESTORS BEGIN
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The Management Board of Agroton Public Limited has set the Issue Price for shares in its public offering at PLN 27 per share. The company has also decided on the number of shares offered in each tranche. The tranche for individual investors will include 10% of the shares and the tranche for institutional investors 90% of the shares.
Agroton expects to raise gross proceeds of up to PLN 153 million from the public offering. The primary reasons for the offering are to acquire additional grain storage capacity, expand the land bank under management, purchase agricultural machinery for cultivation of land, and increase the working capital.
KEY INFORMATION ABOUT THE PUBLIC OFFERING
The Offering comprises 5,670,000 newly issued ordinary shares and is divided into:
· an Institutional Tranche, including 5,103,000 shares, and
· a Retail Tranche, including 567,000 shares.
- Subscriptions for the company’s shares in the Retail Tranche will be accepted from 22 through 27 October 2010 at customer service locations of Dom Maklerski BZ WBK S.A.and at selected branches of Bank Zachodni WBK SAacting as the Agent of Dom Maklerski BZ WBK
- Subscriptions for the company’s shares in the Institutional Tranche will be accepted from 22 through 27 October 2010, until 6:00 p.m., at Dom Maklerski BZ WBK S.A.
- Allocation of the shares will occur by 29 October 2010.
- The company plans to begin listing on the Warsaw Stock Exchange at the beginning of November 2010.
- The company anticipates that after the offering new shareholders will hold about 26.2% of the total share capital of the company.
- Agroton’s advisors in connection with the public offering are Phoenix Capital (international lead manager), Dom Maklerski BZ WBK (domestic lead manager) and Bank Zachodni WBK (financial advisor). Sharelink Securities and Financial Services Limited serve as the underwriter responsible for drawing up the prospectus, and the legal advisors are White & Case, TOV Beiten Burkhardt Ukraine and Dr. K. Chrysostomides & Co LLC. The company’s auditor is Baker Tilly Klitou.
INFORMATION ABOUT AGROTON PUBLIC LIMITED
The Agroton Group is one of the largest and most diversified agricultural producers in eastern Ukraine. The company is vertically integrated, and its core business is cultivation, processing, storage and sale of grain, chiefly sunflower and wheat. The company also handles production and sale of livestock as well as food production.
Since 2001 Agroton has tripled its acreage under production, and it now manages 151,000 hectares of black earth. This makes Agroton the fifth-largest listed company in Ukraine in the agricultural sector in terms of acreage, and the sixth-largest in Europe.
Agroton is the largest producer of sunflower seeds and the fourth-largest wheat producer in Ukraine.
The company has storage facilities with a capacity of about 235,000 metric tonnes, which allows it to sell its products during periods with the most favourable prices. The current capacity of Agroton’s grain elevators makes it the largest grain elevator operator in the Luhansk region.
The company achieves high production profitability thanks to high-quality soil and low production costs.
With respect to production and sale of livestock, Agroton is the largest poultry producer in the Luhansk region, raising about 4 million chickens. The company also has 4,500 head of dairy cows, making it the fifth-largest milk producer in Ukraine. Agroton is also the second-largest producer of baked goods in the Luhansk region, with about 7,000 tonnes per year.
The Company ended first 6 months of 2010 with EBITDA of USD 37.5m and the net profit of USD 28.1m.
STRATEGY
Agroton’s long-term business strategy is to become the leading agricultural producer in Ukraine. The company intends to achieve this goal through:
The company also intends to achieve Western standards of corporate governance.
PURPOSES OF THE ISSUE
The gross proceeds may be about PLN 153 million. The company intends to use the proceeds from the Offering for the purposes of:
· expansion of storage capacities for agricultural commodities at existing facilities by 82,000 tonnes
· increase by 16,000 hectares of the farmland bank in Ukraine
· purchase of additional agricultural machinery for cultivation of 32,000 hectares
· acquisition of 130,000 tonnes of storage facilities from SJSC Khlib Ukrainy
· increase in working capital
To the extent that the net proceeds from the Offering are not invested as described above, proceeds will be used to take advantage of other opportunities in line with the Group’s business strategy. The company estimates that the anticipated proceeds will be sufficient to fund all the proposed uses.
TIMETABLE FOR OFFERING
For more information please contact:
This material is for promotional purposes only and under no circumstances shall constitute an offer or invitation, or form the basis for a decision, to invest in the shares of Agroton Public Limited (the “Company”). The only legally binding document containing information on the Company and on the offering of the Company’s shares is the prospectus (the “Prospectus”) prepared in connection with the public offering of the Company’s shares in Poland and admission of the Company’s shares to trading on the Warsaw Stock Exchange. The Prospectus, which has been approved by the Cyprus Securities and Exchange Commission and has been duly notified to the Polish Financial Supervision Authority, is published on the Company’s website (www.agroton.com.ua), on the website of Dom Maklerski BZ WBK S.A., acting as the offering broker in Poland (www.dmbzwbk.pl), and on the website of Sharelink Securities and Financial Services Ltd, acting as the underwriter responsible for the drawing up of the prospectus (www.sharelinksecurities.com), and is available in English together with a Polish translation of the summary section.
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