Economy 2021-11-15T06:15:30+02:00
Ukrainian news
Salic Agrees With Mriya Agro-Holding To Buy Its Agricultural Assets

Salic Agrees With Mriya Agro-Holding To Buy Its Agricultural Assets

Mriya, Saudi Arabia, Salic UK, Mriya agro-holding

Salic UK (the United Kingdom), which is a subsidiary of the Saudi Agricultural & Livestock Investment Co (Salic, Saudi Arabia) has agreed with the Mriya agro-holding (Ternopil region) to buy its agricultural assets it Ukraine.

This follows from the press service of Mriya agro-holding, Ukrainian News Agency reports.

"Mriya Farming PLC (the United Kingdom) and Salic UK Ltd (Saudi Agricultural and Livestock Investment Company, the United Kingdom) have today announced an agreement on purchase of the farm assets of the Mriya agro-holding, including all infrastructure facilities, technical park, as well as the companies have the right to lease the land bank," the statement says.

The deal value and its conditions are confidential.

According to the report, the deal will be completed after receiving respective permit from the Antimonopoly Committee.

After the deal is done, Mriya agro-holding will continue its operating activity in Ukraine along with a subsidiary of Salic - Continental Farmers Group (CFG).

Rothschild & Co along with the ICU group (being local partners) were the advisers of the Mriya agro-holding during the preparation of the deal.

As Ukrainian News Agency earlier reported, President Petro Poroshenko has welcomed the decision of Saudi Agricultural & Livestock Investment Co (Saudi Arabia) to acquire the Mriya agro-holding (Ternopil region).

He also added that the said contract was the biggest in the agricultural sector for the whole period of Ukraine's independence.

Besides, Poroshenko noted that the agreement did not envision acquisition of Ukrainian lands, but the acquisition of assets.

The British division of the Saudi Agricultural & Livestock Investment Co. (Salic) is close to buying the Mriya Agro Holding company (Ternopil region).

According to the sources, the acquisition would take the Salic-operated farming area in Ukraine to just over 200,000 hectares.

According to Bloomberg, officials at Salic’s headquarters in Riyadh could not be reached for comment and Mriya Chief Executive Officer Simon Cherniavsky declined to comment.

Salic already manages about 45,000 hectares adjacent to the farms run by Mriya, Bloomberg wrote.

In addition, according to Bloomberg, the Saudi firm it joined U.S. agribusiness giant Bunge Ltd. to buy a majority stake in the former Canadian Wheat Board to create G3 Global Grain Group in 2015.

According to the website of Salic, the company has been operating in the area of investment in agriculture, livestock, and supplies since 2012.

The company's shareholder is Saudi Arabia’s State Investment Fund.

Mriya Agro Holding successfully completed the restructuring of its debt on August 21.

As a result of the debt restructuring, Mriya's total debt burden reduced from USD 1.1 billion to USD 309.5 million, including USD 49.3 million in restructured secured debt, USD 208.1 million in restructured unsecured debt, USD 46 million in working-capital notes, and USD 6.1 million in new equipment leasing.

Under the terms of the debt restructuring, all of the assets of Mriya Agro Holding were sold to a new holding company called Mriya Farming PLC (Britain).

Previously, Mriya Agro Holding said that it intended to convert USD 1.098 billion in unsecured debt into securities.

Mriya Agro Holding planned to complete the debt restructuring by mid-July.

Mriya completed negotiations with creditors on restructuring debts totaling almost USD 1.1 billion in September 2016.

The Interior Affairs Ministry issued an arrest warrant for Mriya’s co-owner Mykola Huta in January 2015.

Interpol later issued a red notice for Huta.

Huta is accused of fraudulent misappropriation of more than USD 100 million in funds from European investment funds.

The East Caribbean Supreme Court (British Virgin Islands) began liquidating HF Assets Management Company Limited, which owns a controlling stake in Mriya Agro Holding PLC (Cyprus), which is the holding company of the Mriya Agro Holding company, in December 2014.

Representatives of the agricultural holding met with representatives of the committee of its bondholders and representatives of its creditors on December 16, 2014, to address the issue of restructuring the agricultural holding’s debt.

Before then, the agricultural holding’s creditors appealed to the Ukrainian authorities to investigate Mriya’s operations, claiming that the agricultural holding was refusing to fulfill its debt obligations and unwilling to enter into dialogue with creditors on possible debt restructuring.

The agricultural holding delayed a debt payment of USD 129 million in August 2014.

The total debt, including guarantees, was later estimated at USD 1.3 billion.

Mriya grows wheat, corn, sunflower, barley, canola, buckwheat, potatoes, soybeans, and other crops.

The agricultural holding’s enterprises cultivate land in Ternopil, Khmelnytskyi, Ivano-Frankivsk, Rivne, Lviv, and Chernivtsi regions.

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