The large Ukrainian agricultural holding Kernel plans to leave the Warsaw Stock Exchange.
Andrii Verevsky’s Namsen Limited company, which is the largest shareholder of the agricultural holding Kernel Holding SA, proposed to the company’s board of directors to consider the issue of delisting from the Warsaw Stock Exchange and buying back shares from other shareholders.
This is stated in the shareholder’s letter, which was published March 6.
“For a number of reasons, we have come to the conclusion that the strategic, commercial and financial disadvantages resulting from the company’s listing on the Warsaw Stock Exchange outweigh the relative advantages of the company’s publicity,” said Verewski’s letter.
Namsen believes that going public in 2007 did not bring the expected benefits to the agricultural holding. The company owns 41.29% of Kernel’s voting shares.
It is noted that over the past 11 years, the company has never been able to attract financial capital to invest in development. It is also noted that Polish investors are no longer among the main shareholders of Kernel.
“In view of the above and with no signs of improvement in the near future, we conclude that there is no longer any benefit for the company to remain public,” the letter reads.
Further stay on the Warsaw Stock Exchange will require significant direct and indirect costs from the company. At the same time, the private form of ownership will allow the company to reduce its vulnerability to potential adverse conditions on the stock market, the shareholder believes.
In total, Namsen plans to concentrate 100% of Kernel’s shares.
The company stated that it has already received approval from the Antimonopoly Committee of Ukraine. Kernel Holding SA is registered in Luxembourg and the decision to delist under local law must be made by the board of directors.
