UVS to Raise USD 30 mln via Private Placement

Bloomberg News reported that UVS, a Ukrainian sugar producer, announced plans to raise USD 30 mln via private placement of 20% of its shares this year. Company’s co-owner Mykola Poliluy also said that UVS is considering an IPO in mid-2009. He said that the company could list a 10% stake on the Frankfurt Stock Exchange and raise USD 40 mln. The company plans to spend funds from the private placement for construction of a mixed-fodder plant. UVS reportedly leases 22 ths ha of agricultural land and is in negotiations to acquire an unnamed competitor that leases 12 ths ha. Olha Pankiv: Though officially, UVS lists sugar as its major business line, we currently do not see the company as a strong competitor to Ukraine’s existing top-5 sugar makers. Given UVS’ current sugar processing capacities of 5.5 ths mt of beets daily, we believe that sugar and related agriculture makes up less than 1/3 of its stated revenues of USD 75 mln. The rest likely comes from poultry factories and other business.