Page 70 - UKRRptMar19

Leading Ukrainian agro-concern MHP finalizes acquisition of 90% stake in EU-based poultry producer. Ukraine’s leading poultry producer MHP has finalized its acquisition of a 90%-plus stake in Perutnina Ptuj, a poultry meat producer and processor in Southeast Europe headquartered in Slovenia, according to the company’s Feb. 21 announcement. The company stressed that the “final consideration amount is subject to completion of the audited results of Perutnina Ptuj due diligence” for 2018. This was widely expected as MHP is finalizing an acquisition process that started in September 2018. The company didn’t specify any details about the deal’s value and effect on its operations and financials. But we expect that MHP will bring to light the deal’s details after finalizing the due diligence of its audited results.
● Other
Ukraine's largest agricultural company Ukrlandfarming and its subsidiary Avangardco have inked a restructuring agreement for a UAH4.4bn ($162mn) debt owed to state-owned lender Oschadbank . At the same time, sides did not reveal parameters of the debt restructuring. The deal was reached under a special law on financial restructuring and was preceded by more than a year of negotiations, Ukrlandfarming reported. "Reaching a deal with largest state bank is a signal for international investors," Ukrlandfarming owner, oligarch Oleg Bakhmatyuk commented in the company’s statement published on February 7. In a separate statement, Oschadbank said the same day that independent expert (Ernst & Young) concluded that restructuring is an economically viable solution. The firm considered two scenarios, restructuring and forceful collection of debt.
Ukrainian prosecutors have closed their criminal case for alleged fraud involving Mykola Huta, the former CEO of farming company Mriya Agroholding , the slovoidilo.ua new site reported on February 12, citing a letter from National Anti-Corruption Bureau of Ukraine (NABU). According to the letter, a criminal case was opened in 2014 naming Huta as a suspect in massive fraud.
The investigators suspected embezzlement of over $1.3bn by the farming holding led by Huta, which brought losses to its creditors. NABU was responsible for leading the investigation of that case since November 2018. However, on December 29, this criminal case was closed by a prosecutor citing no evidence of a criminal offense. NABU also reported that as of February 8, it has received no additional materials on the Mriya case from prosecutors.
Recall, Mykola Huta left Ukraine in 2014 after Mriya declared insolvency and a criminal case was opened against its owners. In November 2018, Huta was extradited to Ukraine from Switzerland, where the court released him on personal recognizance.
“Law enforcement bodies no longer suspect Huta in fraud, which we expected would be the most likely outcome after he returned to Ukraine. Recall, an Interior Minister spokesman mentioned already in November the low chances Huta would be prosecuted,” Alexander Paraschiy of Concorde Capital said in a note. "While Ukrainian law enforcement may continue its
70 UKRAINE Country Report March 2019 www.intellinews.com