Kernel to Acquire Three Agriculture Enterprises in Poltava Region
25 January 2008
According to Interfax, Kernel Group (KER PW: N/R) intends to acquire three agriculture enterprises in Poltava Region for about USD 2.4 mln. Combined, the companies’ land under lease is 7.6 ths ha. Anna Dudchenko: Current acquisitions are in line with the Kernel’s plans to expand its land area from 30 ths ha currently to 50 ths ha within the next three years. Based on the announcement, the acquisitions are priced at USD 315 per ha, which is higher than the average price of USD 100 per ha paid by Ukrainian agricultural companies to obtain land under lease. The premium might be justified by the high suitability of land in Poltava region for the production of sunflower seeds, Kernel’s key input.
