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2017-02-24

Trigon Agri: Trigon Agri A/S announces the disposal of a non-core part of its elevator business

Trigon Agri A/S (also the "Company") announces that it has executed
today the share purchase agreement for the sale of the Ukrainian
subsidiary of Trigon Agri A/S - LLC "Liudmylivskyi Elevator" with the
useable storage capacity of 78,000 tonnes, located in Nikolaev region
(also the "Elevator") for a total cash consideration of USD
1,195,482. The total cash consideration is comprised of the nominal
purchase price of USD 1,150,000 and the upward adjustment of USD
45,482 (as a payment for fuel residues, materials and spare parts,
cash on account and accounts receivables).

According to the conditions of the transaction, the amount in UAH
equivalent to USD 1,145,482 has been credited to the bank account of
the Ukrainian parent entity of the Elevator in Ukraine today. The
remaining part of the purchase price in the amount of USD 50,000 will
be received by the Company not later than 3rd May 2017 after the
balance of the third parties' stock would be entirely offloaded from
the Elevator. The USD 50,000 amount can be only reduced by any
possible shortfalls in the quantity of the stored grains warranted by
the Company to the buyer on the date of the transaction.

The divestment of the Elevator comes in the midst of ongoing
optimization of the Trigon Agri A/S business operations in Ukraine.
Historically, the storage operations of the Elevator have been
inefficient which resulted in mainly poor financial performance. Due
to the absence of the land bank of the Company in the vicinity of the
Elevator, the quantity of the Company's own produce stored in the
Elevator is non-existent. Furthermore, due to the close proximity of
the Elevator to the sea grain transhipment terminals, the
neighbouring farmers opt to deliver crops directly to the sea grains
terminals rather than deliver crops for storage to the Elevator.

The proceeds from sale of the Elevator shall constitute USD 1,195,482
(approximately EUR 1,130,693) less a transactional commission fee in
the amount of EUR 48,945. The closing net assets of the Elevator on
the date of the transaction recorded at EUR 406,180. The preliminary
estimated effect from the transaction is a profit of EUR 675,568
(subject to future FX differences) to be accounted for in 1Q 2017
financial interim report .The profit can be downwards adjusted by
possible deductions from the remaining purchase price of USD 50,000
following the results of the offloading of the Elevator.

Comment for the CEO

Simon Boughton, the CEO of Trigon Agri A/S, commented on the
transaction as follows:

"Liudmylivskyi Elevator has been non-core for several years now, in
that the Company does not farm on adjacent lands to the site and has
not required storage space for its own crops in this region. The
divestment of the Elevator is part of our ongoing restructuring
process and it releases up to USD 1,143,732 in total (approximately
EUR 1,081,748) of capital from a weakly performing business, as we
seek to enhance our core business that is profitable agricultural
production".

Investor enquiries

Mr. Simon Boughton, CEO of Trigon Agri A/S

Tel: +372 6191 500, E-mail: mail@trigonagri.com

About Trigon Agri A/S

Trigon Agri A/S is an integrated soft commodities production, storage
and trading company with operations in Ukraine, Russia and Estonia.
Trigon Agri A/S shares are traded on the main market of Nasdaq
Stockholm.

For subscription to Company announcements please contact us:
mail@trigonagri.com

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http://news.cision.com/trigon-agri/r/trigon-agri-a-s-announces-the-dispo...
http://mb.cision.com/Main/515/2199469/634553.pdf

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