Landkom EGM approves merger with Alpcot

Landkom (LKI LN) shareholders voted in favor of a share conversion with Alpcot Agro (ALPA SS) at an EGM yesterday, the company reported. The transaction is still subject to the approval of the Isle of Man court; a relevant hearing is scheduled for Jan. 25, 2012. Trading in Landkom shares on AIM should have been suspended as of Jan. 24, 2012. It is expected that the cancellation of Landkom shares on AIM will take effect as of Jan. 31, 2012. Alpcot Agro announced a share swap offer to shareholders of Landkom on Dec. 21, 2011. The proposed conversion ratio is 22.16 shares in Landkom to one share of Alpcot. As a part of the deal, Alpcot placed USD 20 mln in new shares, which will be used primarily to repay Landkom’s obligations to related entities. If the swap is executed, Landkom shareholders on aggregate would hold 14.2% of shares in combined Alpcot. Alpcot plans to list the combined entity on the LSE main board in 2H12. Alpcot controls 202 ths ha of agricultural land in Russia and Ukraine (183 ths ha and 19 ths ha, respectively), and harvested only 45% of it in 2011. Landkom controls 74 ths ha in Ukraine and harvested 70% of it in 2011.