OREANDA-NEWS. April 30, 2010. Kernel Holding (WSE: KER PW) announced that it raised PLN 241 mln via the offering of 4,300,000 ordinary shares at PLN 56/share. Kernel plans to use the proceeds principally to finance its growth strategy, including potential acquisitions. The offering represented about 6.25% of issued share capital pre-offering.

Concorde Capital: The placement was carried out at the market price of PLN 56/sh (USD 18.9/sh), implying 2010 EV/EBITDA of 7.4x or 6% above its domestic peer average. Gross proceeds from the placement of PLN 240.8 mln (USD 81.2 mln) or 25% above the management’s initial expectations suggest still solid demand for fundamentally strong Ukrainian agricultural stocks. We believe the consolidation of Allseeds’ capacities into Kernel Group as well as further potential acquisitions are major arguments that justified the price premium. Proceeds from placement are likely to be directed toward the completion of Allseeds’ acquisition, replenishment the group’s working capital for the spring sowing campaign and, possibly, acquiring agricultural assets in Russia.