Kernel sells its stake in Taman grain terminal

Ukraine’s leading sunflower oil producer Kernel (KER PW, KERPW) divested its 50% stake in its Russian grain terminal Taman, the Russian newspaper Kommersant reported on March 31. The information on the deal was allegedly provided by Glencore CEO Chris Mahoney to foreign media, though Concorde Capital has not been able to confirm that.

The Taman grain terminal was purchased in equal shares by Kernel and Glencore in 2012 for USD 265 mln. The joint capacity of Taman elevators amounts to 80 kt, with an option to expand to 220 kt, while the annual grain throughput capacity of Taman is 3.6 mmt.

Igor Zholonkivskyi: We believe Glencore to be the most probable buyer of Kernel’s stake. If the deal is confirmed, it will mark the divestiture from Kernel’s last production asset on Russian territory. The deal will be mostly neutral for the company’s operations and will eliminate possible political risks to its business.