MHP considers acquisition of five EU poultry plants

Ukraine’s leading poultry producer MHP (MHPC LI,
MHPSA) is considering several options for acquiring five poultry farms in
Europe, particularly in Poland, France and Germany, CEO Yuriy Kosyuk told
journalists on Nov. 21. The company has already entered into negotiations,
Kosyuk said. Earlier, Polish media noted that MHP has plans to acquire Exdrob,
a Polish poultry producer and exporter.

Andriy Perederey: Kosyuk
didn’t provide any details about the capacities of MHP’s acquisition targets.
In any case, higher EU-based capacities will help the company to compensate the
low poultry import quota that the EU granted to Ukraine in the free trade
agreement launched in 2016. The company’s export volumes could strongly
increase after such an acquisition. But we are keeping unchanged our
expectation that MHP will be able to generate USD 440-450 mln in EBITDA in
2017. We maintain our neutral view on MHP Eurobonds.