April 7, 2017 / 7:23 AM / 3 months ago

BRIEF-Russia's Cherkizovo buys Russian grain producer

2 Min Read

April 7 (Reuters) - Russia's Cherkizovo Group says:

* Acquires NAPKO, a Russian grain producer, for 5 billion roubles ($88 million) in cash and will assume NAPKO's net debt, which stood at 751 million roubles as of the end of March;

* This acquisition and the debt used to finance it will not violate any of Cherkizovo's bank covenants;

* Cherkizovo will acquire NAPKO's agricultural land of 147,000 hectares located in the Lipetsk, Tambov and Penza regions and the supporting production infrastructure to cultivate the land and store the grain;

* Following the acquisition, Cherkizovo's total operating land bank will reach 287,000 hectares;

* "Following this acquisition, we expect to increase our self-sufficiency in grain to 60 percent in the next few years from 30 percent at the end of 2016," Sergey Mikhailov, Cherkizovo chief executive said in a statement;

* NAPKO produced 250,000 tonnes of grain in 2016;

* The deal is expected to be finalised within the next 30 to 60 days. Source text for Eikon: Further company coverage: ($1 = 56.8950 roubles) (Reporting by Moscow Newsroom)

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