Kernel to place 5% additional stake to finance acquisitions

Kernel (WSE: KER PW) announced yesterday its intention to issue approximately 5 mln new ordinary shares (additional to current 73.2 mln) through a secondary placement through an accelerated bookbuilding process which is open until 18:00 today. The company aims to raise a total of USD 135 mln through this offering and additional debt in order to co-finance its aggressive acquisition pipeline (capitalization of 5 mln shares at yesterday’s closing price is USD 132.5 mln). Following the recently announced call option to acquire a 71% stake in Ukrros (UX: UROS UK) for USD 42 mln in cash (enterprise value of USD 160 mln), the company is also in negotiations to acquire farming enterprises holding 150 ths ha for USD 170 mln enterprise value, a deep water grain terminal capacity in Ukraine for est. USD 120-130 mln, an additional 300 ths mt per year of oilseed crushing capacity in Ukraine for USD 60 mln and an oilseed crusher operating in the Russian market for an undisclosed amount. The stock fell 2.6% yesterday to PLN 75 per share.