Mriya and SALIC Deal Completion
Mriya Farming PLC (UK) and SALIC UK Ltd (Saudi Agricultural and Livestock Investment Company, United Kingdom) completed the deal for the sale to Salic of a majority of the Mriya group`s Ukrainian farming assets, including infrastructure facilities, machinery, and companies holding land lease agreements. The transaction was closed following the approval from the Antimonopoly Committee of Ukraine (AMCU). The value and terms of the transaction have not been disclosed.
Upon completion of the deal, Mriya will continue its operations in Ukraine alongside SALIC 's subsidiary, Continental Farmers Group (CFG). Both companies will complete the season as separate businesses and in current configuration. In the next few months, Mriya and CFG will focus on preparing for the integration of assets and developing the strategy of a combined business under management of Simon Cherniavsky as CEO and Mark Laird as Executive Chairman. The companies plan to introduce the joint business strategy in spring 2019.
Signing the deal on September 12, 2018 the new owner of Mriya already declared the intention to invest significantly over the next 2 years into new equipment, infrastructure, agricultural technology and land bank consolidation.
SALIC UK (Saudi Agricultural and Livestock Investment Company, United Kingdom) was established as a wholly owned subsidiary of the Saudi Agricultural and Livestock Investment Company which is a joint stock company that is owned by the Public Investment Fund of the Kingdom of Saudi Arabia. Its statutes state that its activity is in the field of investments in agricultural and livestock production in countries that have a competitive advantage in contributing to the production of selected food goods and their availability for export markets. The SALIC strategy focuses on twelve product categories: wheat, barley, corn, soybean, rice, sugar, vegetable oils, green fodder, red meat, milk products, poultry and aquaculture.
As a specialist in the field of investment in agriculture and livestock production and supply, SALIC aims to engage in the full supply chain for selected agricultural and livestock goods worldwide. SALIC UK investment focus extends to investments in supply, storage and handling, so that greater efficiency can be developed in delivery systems and security of supplies for all potential customers.
SALIC `s existing Ukraine subsidiary Continental Farmers Group (CFG) has operated in Western Ukraine since 2006 farming 45,000 hectares primarily in the Lviv Oblast.
Mriya Farming plc is the English parent company for one of the largest Ukrainian agricultural groups, farming 150 thousand hectares in six regions of Western Ukraine: Ternopil, Khmelnitsky, Chernivtsi, Ivano-Frankivsk, L’viv and Rivne. The Mriya group operates 4 modern silos with a total capacity of 380,000 tons, a potato storage facility with a total capacity of 52,000 tons, a seed plant and a potato starch plant.
The group specializes in growing wheat, rapeseed, barley, sunflower, soybean, corn, sugar beet, potatoes and other crops.