Kernel buys 50% of Russian Taman grain terminal
2 October 2012
Kernel Holding (KER PW) purchased a deep water grain terminal in Russia’s Taman port through a 50/50 JV with Glencore International (GLEN LN), the company informed yesterday. The enterprise value of the facility with 3 mmt p.a. capacity was USD 265 mln (USD 88/t p.a.).
Alexander Paraschiy: The deal is in line with Kernel’s strategy to expand its grain production and trading business in Russia, while we expect little reaction from the market to this announcement as the deal was fully anticipated. First, Kernel pre-announced the purchase of a deep water grain terminal for USD 120-130 mln; second, in July 2012 Russian mass media wrote about the intentions of Kernel and Glencore to acquire the Taman terminal for USD 200-300 mln.
