Kernel to acquire a new oilseeds crushing plant

Kernel Holding S.A. (WSE: KER PW) entered into a call option agreement on June 27 to acquire a 100% interest in the Black Sea Industries (BS”) crushing plant located near the company’s grain terminal in Illichevsk port, according to the company’s press release. While the exercise of the call option is yet to be approved by the Antimonopoly Committee of Ukraine, the BSI crushing plant will be fully operated by Kernel as of the start of the new 2011/2012 season. The value of the transaction is USD 140 mln on a debt free and cash free basis. The plant’s daily oilseeds refining capacity is 2 ths mt. Kernel’s total refining capacity will reach 2.6 mln mt of oilseeds p.a. In Q3 of FY 2010/2011 Kernel posted a net profit of USD 77.86 mln, up 94% y-o-y. Revenue in this period was USD 515.42 mln, up 91% y-o-y.