Sistema has closed a deal to acquire “Gardens of Kuban”

Moscow. On 19 January. Agroholding “the Steppe”, belonging AFK “Sistema” became the owner of 85% of the company “Nursery “Gardens of Kuban”, follows from the data “SPARK-Interfax”. FAS approved the deal in November last year.

“The steppe” also bought Krasnodar OJSC “Labor”, a member of a group with “Gardens of Kuban”. The company grows apples, pears and plums, as well as onions and carrots.

The representative of AFK Sergey Kopytov confirmed that “System” has received control over “Gardens of Kuban” and “Labor”. According to him, “this asset has a number of advantages such as good yields, private irrigation system, new machinery and equipment”. “The Corporation uses the new opportunities of value creation in the agricultural business, including in the framework of the policy of import substitution”, – said the representative of the AFC.

According to “SPARK-Interfax”, the sole owner of “Labor” as at 30 September last year was the General Director of “Steppe” Konstantin Averin. He’s after the deal with the “System” owns the remaining 15% of the “Gardens of Kuban”. “Gardens of Kuban” and “Labor” was part of the group controlled by Averin “Stella,” whose “System” in 2014 bought Agroholding “Steppe”.

Revenue “Gardens of Kuban”, according to “SPARK-Interfax”, in 2014 amounted to 52 million rubles, “Labor” – of 362.6 million.

In December last year, the agricultural holding “Steppe” also bought 85% of Krasnodar JSC “Rodina” (for growing cereal and other crops), which co-owner was Averin.

In December the “System” also bought Agrokombinat “South” (former owner – “VTB Capital asset management”) in Karachaevo-Cherkessia is the largest greenhouse complex in Russia (grows tomatoes and cucumbers) with revenues of almost 2 billion rubles in 2014.

AFK considers some variants of modernization of the “South” – cost from 6 to 15 billion rubles, said Konstantin Averin. According to him, a complete modernization of the 144 hectares of the greenhouse complex will occupy about 5 years. After completion of the modernization of the production volume could increase to 75-80 thousand tons of vegetables per year with 35 thousand tons in 2015.

Sistema has entered the agriculture sector in 2012 through a joint venture RZ Agro Ltd. with the structure of the family of Louis-Dreyfus. In the future, RZ Agro increased its land Bank to over 100 thousand hectares.

In the second half of 2014, Sistema acquired Agroholding “the Steppe”, consisting of five agricultural enterprises in the Krasnodar territory (JSC “Trud” JSC “Novoplastunovskaya”, JSC “Kuban steppe”, JSC “Named after the hero of great Patriotic war Danilchenko” and OJSC “White”) with a land Bank at 26.3 thousand hectares.