Brief: Ukrainian Milkiland sells Ostankino Diary Combine in Russia - sources

Mlk Foods Public

07/10/2015 17:12

Oct 7(Reuters) -  
    * A major dairy producer in Ukraine and Russia Milkiland 
 MLK.WA  is seeking a buyer for its Russian asset pledged for a 
credit, Ostankino Diary Combine, two sources told Reuters, one 
of which named a price of about $55-65 million 
    * Ostankino Diary Combine has been put up for sale for 6-7 
EBITDA, which is about $55-65 million and the asset is being 
offered by Unicredit Bank, one source familiar with the offer 
told Reuters 
    * The second source, involved in the sale process, 
reaffirmed that the sale is handled by Unicredit and explained 
that for Milkiland "it has become difficult to service the debt 
of $100 million and the company wants to sell the plant together 
with the debt" 
    * The source doesn't know what price the company wants to 
get for the asset 
    * Milkiland representative has not replied yet to a written 
request for comment by Reuters 
    * Unicredit's representative in Russia declined to comment 
in response to a Reuters inquiry 
    * One of the sources said the sale process has just begun 
thus there is no possible buyers yet 
    * According to Milkiland statement, at the beginning of 2012 
the company received a syndicated credit for over $100 million 
secured with a 94 pct stake in Ostankino Diary Combine at 
UniCredit and Raiffeissen Bank for four years 
    * In late  August the company said it was in talks with 
creditors (UniCredit Bank Austria and Raiffeissen Bank AO) on 
the debt restructuring scheme 
    * H1 2015 EBITDA of the Russian division was 5.3 million 
euros  ($5.96 million), up 11 pct year on year, while EBITDA of 
the entire holding was 6.4 million euros 
    * Russia has shown better results in the group thanks to 
stable volume of milk processing and raise in prices for 
finished goods due to inflation, the company's report says 
    * According to chairman of the management board of the 
national union of milk producers, Andrey Danilenko, Ostankino 
Diary Combine is in the top 20 of dairy producers in Russia 
 
     
  
     
 Source text for Eikon:  ID:nL8N1253GL  
     
 Further company coverage:  MLK.WA   
    
 
 
 
($1 = 0.8890 euros) 
 
 (Reported by Olga Sichkar, Oksana Kobzeva, translated by Gdynia 
Newsroom) 
 ((gdynia.newsroom@thomsonreuters.com; +48 58 698 39 20;))