9th Jul 2013 09:16
PRESS RELEASE
July 09, 2013, Kyiv, Ukraine
MHP S.A.
Acquisition of grain growing facilities in Russia
MHP S.A. ("MHP", LSE ticker: "MHPC"), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, announces that it has completed the acquisition of 100% of the Group LLC Voronezh Agro Holding which principal operations are the cultivation of grain in the Voronezh region of Russia. This acquisition adds 40,000 hectares (60% of which is in ownership), 200,000 m3 of storage capacities and agricultural machinery to MHP's assets.
Yuriy Kosyuk, Chief Executive Officer of MHP, said:
"This acquisitionis the next step in the execution of our strategy of MHP's geographic diversification and expansion our land bank. Our mid-term target is to increase the efficiency of the Russian entity, which will increase overall financial result of the Company."
-Ends-
For Investor Relations enquiries Anastasiia Sobotiuk (Kyiv)
|
Kyiv: +38 044 207 99 58 |
Notes to Editors:
Information on MHP
MHP is the leading producer of poultry products in Ukraine with the greatest market share and highest brand recognition for its products. MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and grow out to processing, marketing, distribution and sales (including through MHP's franchise outlets). Vertical integration reduces MHP's dependence on suppliers and its exposure to increases in raw material prices. In addition to cost efficiency, vertical integration also allows MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale. To support its sales, MHP maintains a distribution network consisting of 11 distribution and logistical centres, within major Ukrainian cities. MHP uses its trucks for the distribution of its products, which Management believes reduces overall transportation costs and delivery times.
MHP also has a leading grain cultivation business growing corn to support the vertical integration of its chicken production and increasingly other grains, such as wheat and rape, for sale to third parties. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.
Since May 15, 2008, MHP has traded on the London Stock Exchange under the ticker symbol MHPC.
Related Shares:
Mhp Reg S