AgroGeneration doubles land bank via acquisition

AgroGeneration (NYX: ALAGR FP), the France-headquartered farming group with assets in Ukraine that listed on NYSE Alternext earlier this month, signed a memorandum of understanding to acquire three farms in Western Ukraine that control a total area of over 25 ths ha, French media reported yesterday. AgroGeneration will initially take a 70% stake in these farms, with a full buyout option in 2012. These farms, which had been in operation since 2005, produced 83 ths mt of grain in 2009 for an estimated USD 14 mln. The transaction is subject to the approval of the Ukrainian Antimonopoly Committee. The acquisition doubles AgroGeneration’s land under lease to ~50 ths ha.