EBRD To Buy A Minority Stake In Shostka Milk Plant

The European Bank of Reconstruction & Development plans to approve the purchase of a minority stake in the Shostka Milk Plant (SHMK: N/R) at its board meeting on September 18. Currently 97.5% belongs to Bel Group, France. The EBRD has disclosed CapEx plans of USD 29 mln at the Shostka plant to be spent on the expansion of cheese production capacity. Olha Pankiv: Earlier Bel Group announced CapEx plans of USD 10 mln to be spent over the next three years to develop its distribution system, brand building, and a capacity increase. Though the EBRD has not disclosed the time frame for spending the USD 29 mln, we believe the company upgraded its CapEx plans after Russia recently added Shostka to the list of six Ukrainian dairy producers allowed to export.