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9 Jul 2008 07:00
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THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTIONΒ IN WHOLE OR IN PART,Β IN,Β INTOΒ OR FROMΒ THEΒ RUSSIAN FEDERATION,Β UKRAINE, THE UNITEDΒ STATES,Β CANADA,Β AUSTRALIAΒ ORΒ JAPANΒ OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
9Β JulyΒ 2008,Β London
MHPΒ S.A.Β ("MHP" or the "Company")
MHPΒ acquiresΒ 80%Β interest inΒ Private Enterprise "Ukrainian Bacon"
MHP S.A.Β (LSE:Β MHPC),Β one of the leading agro-industrialΒ companiesΒ in Ukraine, focusing on the production ofΒ poultryΒ and the cultivation of grain,Β is pleased to announce todayΒ thatΒ it has acquiredΒ anΒ 80%Β stakeΒ inΒ Private Enterprise "Ukrainian Bacon",Β a private Ukrainian meat production company,Β forΒ US $25Β million.Β The majority of the purchase price has been paid to settle Ukrainian Bacon's existing liabilities.
Ukrainian Bacon, with operations facilities located in the Donetsk Region of Ukraine, producesΒ sausages andΒ cookedΒ meats productsΒ under the brands Europroduct andΒ Baschinsky.Β Ukrainian Bacon'sΒ current production capacity isΒ approximatelyΒ 50Β tonnesΒ of meat products per day and the daily production capacity is expected to reach 200-250Β tonnes within nextΒ two to threeΒ years.
OneΒ of the componentsΒ ofΒ MHP'sΒ strategyΒ outlinedΒ at the time of theΒ InitialΒ PublicΒ OfferingΒ was toΒ continueΒ agro-industrial diversificationΒ throughΒ further development and expansion of its meat processing facilities.Β Following a review and evaluation of theΒ Ukrainian meat market,Β MHP hasΒ decided toΒ acquireΒ thisΒ 80%Β stake inΒ Ukrainian BaconΒ toΒ increaseΒ its meat processingΒ capacity,Β toΒ increaseΒ theΒ scaleΒ of its operations,Β toΒ take advantageΒ ofΒ Ukrainian Bacon'sΒ strong brands andΒ toΒ increaseΒ itsΒ market share.Β
Commenting onΒ the acquisition,Β Yuriy Kosyuk,Β Chief Executive Officer of MHP, said:
"We are delighted toΒ have successfully completed theΒ acquisition ofΒ Ukrainian Bacon.Β The level of meat consumption inΒ UkraineΒ remains below the average consumption level inΒ developing countries andΒ we believeΒ thatΒ it will growΒ in line withΒ the population'sΒ increasing income.Β DespiteΒ doublingΒ ourΒ meat processingΒ production volumeΒ since the start of the year,Β consumer demand stillΒ exceedsΒ our productionΒ capacity. ThisΒ acquisition will significantly increaseΒ ourΒ meat processing production capacity, whilst further strengthening our vertical integrationΒ model."
- Ends -
For further information please contact:
|
Financial Dynamics Ben Foster (London) Marc Cohen (London) Leonid Solovyev (Moscow) |
Β London:Β +44 20 7831 3113 Β Moscow: +7 495 795 06 23 |
For investor relations enquiries, please contact
ir@mirohleb.kiev.ua
Notes to Editors:
AboutΒ MHP
MHP was admitted to the Official List of the London Stock Exchange in May 2008. It is the leading producer of poultry products inΒ Ukraine, with a 2007 market share for industrially produced chicken meat of approximately 36%, according to the State Committee on Statistics of Ukraine.Β It'sΒ "Nasha Ryaba" brand is the market leader, whilst MHP also has several other national and regional brands for processed meat products.
MHP is fully vertically integratedΒ owning and operatingΒ each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and growΒ out to processing, marketing, distribution and sales (including through MHP's franchise outlets).Β 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 bio-security and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale.
MHP also has an important and expanding grain operation, producingΒ and sellingΒ sunflower oil as a by-product of its fodder production. MHP also produces and sellsΒ beef, sausages, cooked meats convenience food products, goose meat, foie gras, fruit and potatoes.
In 2007, MHP had revenues from continuing operations of US $478 million (2006 US $315 million) and EBITDA of US $164 million (2006 US $141 million). MHP has grown significantly in recent years. As at 31 December 2007, MHP's total assets were US $953 million as compared to assets of US $383 million as at 31 December 2005.Β
Information onΒ Ukraine
Independent since 1991,Β UkraineΒ represents a large consumer market with 46 million peopleΒ and a growing economy fuelled by the rising affluence of domestic consumers and external demand for Ukrainian products.Β In 2007, per capita GDP amounted to USΒ $2,965Β and theΒ current pace of household income growth is expected to be sustained in 2008 owing to increasing salaries and enlarged social payments.Β UkraineΒ became a member of the WTO inΒ JuneΒ 2008.
Forward-Looking Statements
This press release might contain forward-looking statements that refer to future events or forecast financial indicators for MHPΒ S.A.Β Such statements do not guarantee that these are actions to be taken by MHPΒ S.A.Β 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. MHPΒ S.A.Β does not intend to change these statements to reflect actual results.
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