Last checked at 25 Oct 2010 07:46
PRESS RELEASE
October 25, 2010, Kyiv, Ukraine
MHP S.A.
Acquisition of grain growing facilities
MHP S.A. ("MHP" or the "Company", 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 acquired 100% of LLC Ridny Kray, whose principal activities are cultivation of grain in the Khmelnytsky region of Ukraine. LLC Ridny Kray has more than 11,000 hectares under its control and will become a part of one of MHP's grain growing enterprises - CJSC Zernoproduct MHP.
Yuriy Kosiuk, Chief Executive Officer of MHP, said:
"This acquisition adds further strength to our land bank, which will help us continue to increase our grain output as we drive towards our stated target of 400,000 hectares in the next couple of years."
-Ends-
For further information please contact:
Financial Dynamics Ben Foster (London) Marc Cohen (London) Leonid Solovyev (Moscow)
For Investor Relations enquiries Anastasiia Sobotiuk (Kyiv)
|
London: +44 20 7831 3113
Moscow: +7 495 795 06 23
Kyiv: +38 044 207 99 58 a.sobotyuk@mhp.com.ua |
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.
Forward-Looking Statements
This press release might contain forward-looking statements that refer to future events or forecast financial indicators for MHP S.A. Such statements do not guarantee that these are actions to be taken by MHP S.A. in the future, and estimates can be inaccurate and uncertain. Actual final indicators and results can considerably differ from those declared in any forward-looking statements. MHP S.A. does not intend to change these statements to reflect actual results.