EBRD To Acquire 17.5% Stake in Shostka Milk via Share Issue

The European Bank for Reconstruction and Development will acquire a 17.5% stake in Shostka Milk (SHMK: HOLD) by purchasing the company’s entire upcoming additional share issue. Shostka Milk shareholders are due to approve the charter fund increase at their EGM on January 22. According to Ukrainian news, Shostka Milk will issue 338,718 new shares at par. Subscription is planned to take place in two stages: from March 24 to April 11 and from April 12 to April 29. In an EBRD press release yesterday, it said the funds will be channeled into modernization and expanding production capacity. French Groupe Bel owns a majority stake in the milk producer. The EBRD board approved purchase of a minority stake in the company at its September 18 meeting. Olha Pankiv: Yesterday’s announcement officially confirms our expectations for how the EBRD will acquire the stake in Shostka Milk (see our November 2 dairy industry report).