Canada`s Fairfax Financial Holdings Limited has decided to acquire 9.99% shares of Ukraine`s largest sugar producer Astarta.
”Under the Share Purchase Agreement, Fairfax shall acquire from [two majority stockholders in Astarta] Albacon 450,000 shares in the company and from Aluxes 2,047,500 shares in the company, representing in total 9.99% of the total voting rights of the company (Sale of Shares),” a posting on the Warsaw Stock Exchange, where Astarta is listed, read.
Albacon Ventures Limited is controlled by Astarta General Director Viktor Ivanchyk and Aluxes Holding Limited is controlled by Ukrainian businessman Valeriy Korotkov.
”The Sale of Shares is subject to a customary conditions precedent, which must be satisfied or waived by February 24, 2017, including obtaining approvals from the Antimonopoly Committee of Ukraine,” the post stated.
Fairfax shall also have the right to acquire from Aluxes an additional 2,497,800 shares in the company, representing approximately 9.99% of the voting rights in the company, which can only be exercised 61 days after the Sale of Shares (First Tranche Call Option). It can acquire from Aluxes a further 1,951,583 shares in the company, representing approximately 7.8% of the voting rights in the company, which can only be exercised 61 days after the acquisition of shares as a result of the First Tranche Call Option (Second Tranche Call Option).
In addition, Aluxes has the right to transfer the above shares to Fairfax, should Fairfax not exercise its rights mentioned above. Albacon has also granted a tag-along right to Fairfax in case Albacon sells a certain percentage of its shares in the company to a third party.
”We highly welcome Fairfax becoming a substantial shareholder. We see a lot of opportunities for further development of our company and are optimistic that our strategic cooperation with Fairfax will help further unlock the great potential of Astarta,” Astarta CEO and founder Viktor Ivanchyk commented on the deal.
As UNIAN reported earlier, Astarta posted EUR 15.9 million in net profit in 2015 against a net loss of EUR 68.1 million in 2014. Its revenue in the period under review shrank by 11% to almost EUR 314 million.
Astarta is a vertically integrated agri-industrial holding whose core business is the production of sugar, grain and oilseed crops. It also procures milk. Its land bank covers 285,000 hectares. It operates nine sugar refineries.
Fairfax Financial Holdings Limited is a holding company which, through its subsidiaries, is engaged in property and casualty insurance, reinsurance and investment management.