OREANDA-NEWS. June 23, 2010. Kernel, the major edible oil producer in Ukraine, has finalized its deal to purchase Allseeds, the company reported June 22. As a result of the exercise of the call options signed in Dec 2009 – Feb 2010, Kernel acquired 94% stake in the company. The final cost of the deal is still in the process of adjustment; however, according to Kernel, the resulting Allseeds’ enterprise value stands roughly at USD 220mn.

Millennium Capital: the news is positive for Kernel. With Allseeds’ assets, Kernel became the largest edible oil producer in Ukraine with the market share of 19%. Furthermore, it surpassed Cargill by the amount of oil exportsed, accounting for nearly 20% of the country’s oil exports (vs 17% of Cargill). The EV of Allseeds resulting from the deal (USD  220mn) is lower than the previous estimates provided by Kernel in winter 2009-10 (USD  230mn), highlighting the weaker finances of the enterpriseas revealed by the due diligence. Kernel also reiterated its willingness to dispose of the Mykolaiv oilseed crushing plant due to the high level of depreciation of its assets.