Ovostar might purchase a poultry farm in Poland

Ukrainian egg producer Ovostar Union (OWO PW) is considering an acquisition of a poultry farm in Poland, the Kyiv-based LCF law firm announced on Dec. 7. The firm said it’s acting as a legal advisor and assessing the risks of the potential deal. It offered no other information on the deal, including the farm’s capacity.

Igor Zholonkivskyi: Given the limited informaton, we can’t assess the deal’s economic viability. As of 9M16, Ovostar had only USD 7 mln cash on hand. So in case it decides to pursue the deal, it will need to attract external financing. This should be manageable for Ovostar, a company that has a robust business model and very low indebtedness level. As of 9M16, its net debt-to-LTM EBITDA ratio of 0.45x remains among the lowest in Ukraine’s equity universe.