Kernel agrees to acquire minority interests in Allseeds

Kernel Group (WSE: KER PW) announced yesterday that it signed call option agreements to acquire a controlling stake on February 13 and the 37.6% minority shareholder interest in Allseeds on February 12. Kernel said the agreements value Allseeds at about USD 230 mln. The deals are subject to the approval of the Antimonopoly Commission of Ukraine. On January 19, Kernel offered to purchase the minority stakes for USD 28 mln. Kernel, in mid-January, said it offered to acquire the controlling stake for USD 42 mln in cash. Allseeds is Ukraine’s third largest producer of crude sunflower oil. Allseeds Group owns two refineries in Ukraine, with a total output of 565 ths mt per year. It also controls a transshipment and export terminal with a capacity of over 1 mln mt in Mykolaiv and 16 storage facilities with a capacity of 600 ths mt. In other news, Kernel yesterday released its 2Q09 financial results (ending December 31, 2009): revenues decreased 6.5% yoy to USD 272.3 mln, while it increased operating profit (EBIT) by 7.0% yoy to USD 51.6 mln and net profit by 8.2% yoy to USD 43.2 mln. The company improved its FY2010 guidance: USD 1.05 bln in revenue, USD 195 mln in EBITDA and USD 155 mln in net profit.