July 13, 2012

The purchase of two agricultural companies with a combined land bank of 18,500 hectares in Ukraine's Sumy and Poltava regions has been completed by Industrial Milk Company (IMC).

According to the company's notice issued on the Warsaw Stock Exchange on July 4, one of the agricultural firms has 14,500 hectares of land in a five to seven year-lease in Sumy region and its purchase price was US$10.4 million. The latter agricultural enterprise cultivates 4,000 hectares of farmland in Poltava region, which - similarly to the former case - is located close to the holding's existing farmland.

The IMC does not disclose the names of the acquired companies, specifying that the purchase expanded its land bank to 82,690 hectares. The company announced these two deals in April for the first time. At the same time, it reported that the Sumy enterprise was to acquire owns grain storage facilities for about 80,000 tonnes that would allow for increasing the Company's total storage capacities to 303,000 tonnes. However, the July release contains no information on this.