Trigon Agri explores separate listing for its dairy farming operations and updates the 2011 projections for this business segment
Copenhagen, March 14, 2011
Trigon Agri management is working on plans to take advantage of market opportunities in the dairy farming industry in Estonia and North-West Russia with the aim of creating a large-scale regional milk producer. In order to pursue these plans in a way that also unlocks the perceived hidden values in Trigon Agri’s existing dairy operations, the management has authorised selected investment banks to sound out institutional investors on the possibility of investing into a separately listed dairy farming business, built on the current dairy farming operations of Trigon Agri. The envisaged structure does not involve Trigon Agri selling any of its shares in its dairy farming subsidiaries. Subject to positive feedback and suitable stock market conditions, the management intends to propose a separate listing of the dairy operations to the Trigon Agri Board of Directors for decision.
Total income of Trigon Agri dairy farming operations in Estonia and North-Western Russia in 2010 was EUR 5.4 million and EBITDA EUR 1.4 million (an EBITDA margin of 26%). With the existing plans and given the currently prevailing milk prices in Estonia and North-Western Russia, as well as the already planned increase in the number of milking cows in the Russian dairy farm (as communicated in previous financial reports) the total income of the dairy operations in 2011 is currently expected to be in the region of EUR 7.7 million with an EBITDA margin target of approximately 40%.
Mr. Ülo Adamson, President of Trigon Agri A/S
Tel: +372 66 79200
About Trigon Agri
Trigon Agri is a leading integrated soft commodities production, storage and trading company with operations in Ukraine, Russia and Estonia. Trigon Agri’s shares are traded on the main market of NASDAQ OMX Stockholm. Trigon Agri is managed under a management agreement by Trigon Capital, a leading Central and Eastern European operational management firm with around USD 1 billion of assets under management.