Brief: Kernel Holding Plans To Divest Some Assets For $210 Mln

Kernel Holding SA

27/04/2022 06:57

April 27 (Reuters) - Kernel Holding SA  KER.WA :
    * SAID ON TUESDAY THAT MANAGEMENT DECIDED TO DIVEST PART OF
ITS
FARMING ENTITIES COMPRISING 134 THOUSAND HECTARES OF FARMLAND
WITH RELATED FARMING INFRASTRUCTURE, MACHINERY AND WORKING
CAPITAL TO DE-RISK THE BUSINESS AND IMPROVE THE MID-TERM
LIQUIDITY 
    * UNCERTAINTY REGARDING THE TIMING AND ABILITY TO RESUME THE
SOFT
COMMODITY EXPORTS VIA UKRAINIAN BLACK SEA PORTS ALONG WITH THE
EXISTING SIGNIFICANT CAPACITY LIMITATIONS OF ALTERNATIVE
LOGISTIC EXPORT ROUTES MIGHT TRANSLATE INTO FORCED FALLOWING OF
THE FARMLAND IN UKRAINE GOING-FORWARD, MATERIALLY REDUCING THE
FUTURE FINANCIAL PERFORMANCE OF FARMING BUSINESS
    * THE INITIATED FORMAL SALE PROCESS FOR THE DIVESTMENT
ASSETS
GAINED NO SUBSTANTIAL TRACTION FROM LOCAL AND INTERNATIONAL
STRATEGIC PLAYERS CONSIDERING THE PRESENT OPERATIONAL
ENVIRONMENT AND ADVERSE PROSPECTS OF THE BUSINESS
    * CONSEQUENTLY, NONE OF THE POTENTIAL BIDDERS DECIDED TO
SUBMIT A
NON-BINDING OFFER FOR DIVESTMENT ASSETS
    * AFTER DUE EVALUATION, AN INVESTMENT VEHICLE (BUYER)
DIRECTLY
CONTROLLED BY ANDRII VEREVSKYI, THE PERSON DISCHARGING
MANAGERIAL RESPONSIBILITIES AT THE COMPANY AS A CHAIRMAN OF THE
BOARD OF DIRECTORS, AGREED TO ACT AS THE INVESTOR OF LAST RESORT
TO SUPPORT THE COMPANY IN THE CURRENT CIRCUMSTANCES
    * COMPANY ENTERED INTO THE LEGALLY BINDING SHARE PURCHASE
AGREEMENT WITH THE BUYER REGARDING THE DIVESTMENT ASSETS
    * THE CONSIDERATION TO BE PAID BY THE BUYER TO THE COMPANY
IS US$
210 MILLION, IMPLYING A MATERIAL PREMIUM AS COMPARED TO THE
CURRENT MARKET CAPITALIZATION OF THE COMPANY IN RELATION TO ITS
CONSOLIDATED NET ASSETS
    * THE COMPLETION OF THE TRANSACTION IS CONDITIONAL UPON
OBTAINING
CONSENTS FROM SOME OF THE COMPANY’S CREDITORS AND RELEVANT
REGULATORY REQUIREMENTS

    
    
 Source text for Eikon:  urn:newsml:reuters.com:*:nEM4NQ9nQa
 Further company coverage:  KER.WA  

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