MHP finalizes acquisition of 90% stake in EU-based poultry producer

Ukraine’s leading poultry producer MHP (MHPC LI, MHPSA)
has finalized its acquisition of a 90%-plus stake in Perutnina Ptuj, a poultry
meat producer and processor in Southeast Europe headquartered in Slovenia,
according to the company’s Feb. 21 announcement. The company stressed that the
“final consideration amount is subject to completion of the audited results of
Perutnina Ptuj due diligence” for 2018.

Andriy Perederey: This was
widely expected as MHP is finalizing an acquisition process that started in
September 2018. The company didn’t specify any details about the deal’s value
and effect on its operations and financials. But we expect that MHP will bring
to light the deal’s details after finalizing the due diligence of its audited
results.

Interestingly, the EBRD disclosed some of the
information on MHP/Perutnina deal when announcing that it is considering to
provide EUR 100 mln financing for the Ukrainian holding, also stating that EUR
100 mln is the “total project cost” (the project includes the acquisition of
Perutnina and “subsequent capital investments in it”). The information from the
EBRD is in line with our previous assessment that the
deal’s value range is USD 100-120 mln.

All in all, we do not expect any significant market
reaction to the announcement.