PJSC Company Rise is the sole operator of logistics and elevators at the agricultural holding UkrLandFarming. June 14, shareholders agreed to increase the authorized capital of PJSC Company Rise by 9.2 billion UAH ($1.14 billion). Oleg Bakhmatyuk as the head of the Board of Directors of the Company UkrLandFarming commented that it will streamline the financing of existing and new projects of the company.
According to Bakhmatyuk, as a result of the additional issue in the ownership structure of PJSC Company Rise will not increase the number of external shareholders. On the contrary, UkrLandFarming, which owns 99.72% of the company, will improve the operational management of the business.
“We have already invested about $700 million in the construction of elevator facilities, purchase of equipment, modernization of seed plants. We plan to invest around 3.5-4 billion UAH in the next two years to increase the elevator capacity of 2.1 million tons of storage. In fact, this $700 million have been attracted by the companies of the Group and Rise is the end-purchaser of the assets. To streamline the system of financing and mutual settlements those companies will become shareholders of the company Rise. ‘This will not cause changes in the structure of the share capital’, — said O. Bakhmatyuk.
The main focus in this year was to build new elevators in Poltava, Sumy and Rivne regions with total capacity of 1.2 million tons of storage. ‘Such capacities have become one of the largest in Ukraine and Europe, which allowed the group to strengthen significantly its position in the segment of agricultural logistics. We have already invested more than $400 million’, — said A. Bakhmatyuk. The company is planning to implement similar projects in 11 regions of Ukraine in the next two years.
Oleg Bakhmatyuk added that the share issue is privately held and will be bought by other companies of the group UkrLandFarming”, — said O. Bakhmatyuk.
UkrLandFarming also thinks that the market does not expect the new shareholders to come outside of the group.