OREANDA-NEWS. December 3, 2007. Anatoliy Yurkevich, former deputy chair of Kiev region administration and owner of Milkiland-Ukraine subsidiary (part of Bankomsviaz corporation, where Mr Yurkevich is supervisory board chair), continues consolidation of his assets in dairy industry, while preparing for the IPO on the Frankfurt stock exchange, UFC-Capital reports. Following the recent acquisition of Kharkiv City Dairy and First Kiev Dairy, Mr Yurkevich added to his dairy business one more asset – Chernigov Dairy OJSC. The deal on acquisition of this Chernigov-based company was finalized in mid-November. The OJSC specializes in production of whole-milk products, ice-cream, casein and dry milk powder. The dairy capacities are able to process about 150 tonnes of raw milk per day. About 25% of its products Chernigov Dairy exports to CIS and other foreign countries.

Chernigov Molochniki (Chernigivska Spokusa and Krynka TM) until recently belonged to the sphere of influence of Peter Ustenko, a prominent socialist. According to the State Committee for Securities and Stock Exchange, by the end of 2006, a 72% interest in Chernigov Dairy OJSC was owned by eight individuals: 9.9% - Sergei, Peter and Natalia Ustenko (each); 9.7% - Alexander Levkovski; 10% - Peter Zinchenko; 5.5% - Elena Zinchenko; 6.7% - Alexander Gladchenko; and 9.9% - Antonina Tsvetkova.

The purchased Chernigov-based dairy will perfectly fit into the dairy business structure of Anatoliy Yurkevich and increase the capitalization of Milkiland on the eve of the forthcoming IPO. Chernigov Dairy OJSC has a good location in terms of raw milk supply and demonstrates dynamic growth of the whole-milk products sales.

Chernigov Dairy OJSC ended 2005 with the profit of UAH 0.413 mn increasing its net income by 23.3% to UAH 66.897 mn. In 2006, the company's net sales amounted to UAH 71.897 mn, however, the loss of the company for the same period amounted to UAH 0.505 mn.

According to Viatcheslav Rekov, chief executive of Milkiland-Ukraine subsidiary, in the nearest future the company will finalize one more deal: “we expect to finalize an acquisition of a factory in Russia. Subsequently, in January-February 2008, we shall hold the IPO of a 20% stake on Frankfurt SE. Thus, the company plans to attract about $100 mn for modernization of its production capacities.”

Milkiland-Ukraine subsidiary (Dobriana, Koliada, and Romenska TM) – is the third largest Ukrainian producer of cheese and whole-milk products. According to Astarta-Tanit investment and consulting group, last year, the share of the company in the total production of cheese in Ukriane (122 thousand tonnes) was 6.8%, and its share in the total domestic production of whole-milk products (1.28 mn tonnes) amounts to 5.6%. In 2006, the company revenues amounted to $149 mn, and the pre-tax profit – $7 mn. The final beneficiary of the company is Anatoliy Yurkevich.