FirstFarms A/S has today entered final agreement about purchase of Tjekkiet Invest A/S and thus taken over the operation. Tjekkiet Invest A/S owns 100 percent of the Czech company, Granero Vlasatice s.r.o., which includes both crop and pig production in the Czech Republic.
The production of slaughter pigs is divided on two different sites with a total production of 72,000 slaughter pigs per year.
The production plants are of high quality, and the production results are satisfactory.
The production foundation for the crop production is 1,150 hectares, of which 929 hectares are owned, in a varied crop rotation consisting of grain and rape.
CEO in FirstFarms, Anders H. Nørgaard says: "With the purchase of Tjekkiet Invest A/S, we substantiate our ambitious growth strategy regarding investments in - and operation of - sustainable agriculture in Eastern Europe. We also expect significant synergies related to FirstFarms' pig production in Hungary and crop production in Slovakia."
"The agricultural production in Eastern Europe is in a very good development. The price of land is increasing and the demand for pork is large", Anders H. Nørgaard underlines.
The purchase price is agreed to DKK 60 million for 100% of the share capital in Tjekkiet Invest A/S. The purchase price is expected to be paid with issuance of shares in FirstFarms A/S with DKK 19.9 million at price 49.21, issuance of DKK 19.9 million in convertible bonds and DKK 20.2 million in cash.
The purchase of Tjekkiet Invest A/S is in 2018 expected to influence FirstFarms A/S' accounts to a smaller extent, as the take-over will not have full effect before Q3, 2018. A positive effect of EBITDA of DKK 4-5 million is expected and an EBIT of DKK 1-2 million in 2018.
With the purchase, FirstFarms owns a "land bank" of over 7,000 hectares of owned land and over 11,000 hectares rent contracts - a total of 18,000 hectares of agricultural land in operation.
"All owned land is booked at purchase prices and not market prices. Thus, we have significant reserves in the level of DKK 100-150 million before tax, which are not included in our booked equity".
Best regards, FirstFarms A/S
For further information: Please visit our website www.firstfarms.com or contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.
About FirstFarms: FirstFarms is a Danish stock exchange listed company, which purchases and operation agriculture in Eastern Europe. We develop the individual farms to modern and sustainable businesses that deliver milk, meat and grains of the highest quality to the dinner tables all over the world.
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