Significant Share Acquisition by Infortar Strengthens Agriculture
Infortar Expands Agricultural Footprint Through Share Acquisition
OÜ EG Biofond recently executed a significant investment agreement to acquire a remarkable 96.6% shareholding in OÜ Estonia Farmid. This strategic move positions Infortar's subsidiary at the forefront of the agricultural sector, following the precondition of receiving approval from the Competition Authority and completing necessary operations for the transaction.
Insights into Estonia Farmid’s Operations
Following this acquisition, the ownership structure of Estonia Farmid OÜ consists of OÜ EG Biofond, which now holds an impressive 96.6% of the shares, and the subsidiary Osaühing Estonia, which maintains a 3.4% stake. Estonia Farmid OÜ is a significant player in agriculture, operating across three agricultural firms: Estonia OÜ, Kabala Agro OÜ, and Sõrandu Farm OÜ. Collectively, these entities employ approximately 150 individuals and manage an extensive total of 9,400 hectares of arable land across various municipalities. Notably, more than 6,000 hectares are owned outright by the company.
Key Agricultural Activities
The group’s operations predominantly focus on dairy farming, with dairy farms situated in key locations including Oisu, Taikse, and Kabala. Impressively, these locations host around 2,640 dairy cows, with average milk production per cow reaching an exceptional 13,300 kilograms annually, marking one of the highest production rates in Estonia. Additionally, the company cultivates approximately 27,000 tons of grains and rapeseed each year, showcasing its diverse agricultural activities.
Sustainable Practices and Investments
Estonia Farmid OÜ also maintains a 40% stake in the Oisu biomethane plant, further emphasizing its commitment to sustainability and reducing the carbon impact associated with dairy farming.
Visions for the Future
During discussions regarding the acquisition, Ain Hanschmidt, Chairman of Infortar’s Management Board, highlighted the importance of agriculture as a pillar of the Estonian economy, noting the nation’s rich natural resources including food, timber, and minerals. Hanschmidt expressed optimism about the potential for Estonia's dairy industry to compete on the international stage, given its fertile farmland and well-established reputation.
Infortar’s Role in Economic Diversification
Infortar stands as a vital participant in agricultural, industrial, and service sectors, actively seeking to diversify while managing risks. This acquisition marks a strategic step in its ambition to enhance its agricultural portfolio and sustain its market leadership.
Strategic Transition Management
Jaanus Marrandi, a Management Board Member of Estonia Farmid OÜ, remarked on the potential for future growth and investment under new ownership. He emphasized the current owners' belief that a fresh, ambitious approach is necessary for advancing Estonia Farmid’s development.
Confidence in New Ownership
Marrandi assured stakeholders that with Infortar's financial strength and solid reputation, the ongoing initiatives will remain stable and continue to flourish. This acquisition, while strategic, is also viewed as beneficial for all parties involved as Estonia Farmid embarks on its next chapter of innovation and growth.
A Broader View of Infortar
Infortar operates across seven countries, focusing on sectors such as maritime transport, energy, and real estate. The group’s portfolio is impressive, owning a 68.47% share in Tallink Grupp and a complete stake in Elenger Grupp. The company’s real estate holdings cover approximately 141,000 m², while the broader Infortar group comprises 110 companies, which include 101 subsidiaries, four affiliates, and five subsidiaries of affiliated companies. Infortar’s workforce totals over 6,200 employees, highlighting its role as a significant employer in the region.
Frequently Asked Questions
What is the significance of Infortar's acquisition of OÜ Estonia Farmid?
The acquisition positions Infortar as a major stakeholder in agriculture, allowing for enhanced operational capabilities and strategic growth.
How does Estonia Farmid contribute to the local economy?
Estonia Farmid plays a vital role in the agricultural sector, managing extensive farmland and employing local workers, thereby significantly contributing to the local economy.
What future developments can be expected from Estonia Farmid?
Under Infortar's ownership, further investments and innovations in farming practices and sustainability initiatives are anticipated, leading to potential growth in production and efficiency.
What are Infortar's key areas of business?
Infortar is primarily engaged in maritime transport, energy, real estate, and various other sectors including agriculture, demonstrating a diverse business model.
How can I reach Infortar for more information?
You can contact Kadri Laanvee, the Investor Relations Manager, at +372 5156662 or via email at kadri.laanvee@infortar.ee.
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