MHP withdraws from acquisition of Polish-based poultry plant
31 January 2018
Ukraine’s leading poultry producer MHP (MHPC LI,
MHPSA) has withdrawn its acquisition intentions of the Kutnowskie Poultry Plant
Exdrob, the portalspozywczy.pl news site reported on Jan. 29. A source within
Exdrob management informed the news site that the company received a letter
from Raftan Holding (an MHP subisiary and Cyprus-based company) confirming its
withdrawal from negotiations on the purchase for business reasons. The letter
was received on Nov. 28, 2017.
Andriy Perederey: As we
reported earlier, MHP has been considering acquiring poultry plants in Europe with the aim of boosting exports
from its Ukraine-based capacities. In regards to Exdrob, the company has been
restructuring its debts and a local court began proceedings on Dec. 7, 2017.
Within three months, the court should receive a restructuring plan approved by
Exdrob’s creditors, according to regulations.
We believe that the “business reasons” that MHP
noted in the letter to Exdrob was connected to the company’s debt problems and
future restructuring process. Nevertheless, we expect MHP’s 2017 EBITDA at
about USD 460-470 mln. And we remain bullish on MHP stock and neutral on its
Eurobonds.
