Monday 13 February 2017

Black Earth Farming initiate liquidation

Black Earth Farming has entered into agreement to sell its Russian operations and announces intention to propose distribution of proceeds to shareholders and initiate a voluntary liquidation of the company.

Black Earth Farming was established in 2005 and produced cereals, oilseeds and vegetables over 149,000 hectares in central Russia although the land bank is recorded as 256,000 hectares.

According to Black Earth Farming’s website news release, the wholly owned subsidiary, Planalto Enterprises Limited has agreed a share purchase of its indirectly wholly owned subsidiaries Agro Invest and Agro Invest Regions and an assignment agreement pursuant to which Planalto assigns its claims under the intergroup loans to Agro Invest to Volgo-DonSelkhozInvest LLC.

The total estimated purchase price is given as USD 184 million.