Icon Private Equity has surrendered its share in Ukrainian agriculture company Agrika to Sintal Agriculture in exchange for a 6 percent equity in Sintal. The merger of Sintal and Agrika has created a joint land bank of 150,000 hectares. The deal also included USD 8 mln in convertible credit extended to Sintal; if exercised, the conversion could put Icon Private Equity’s Sintal stake at 10.8 percent.
Agrika operates in the Kherson oblast in southern Ukraine with 46,000 hectares under management. 85 percent of the land has been under a crop rotation cycle for the past few years.
Sintal Agriculture (www.sintalagriculture.com)
Kharkiv-based Sintal Agriculture primarily operates in the Kharkiv and Kherson regions, with a current land bank of 150,000 hectares on which wheat, maize, soybeans, sugar beet and other crops are grown. Founded in 2008, Sintal Agriculture is part of Sintal’D LLC, a Ukraine-based research and production firm incorporated in 1992. The company specializes in cereal planting, sugar production and trading.
Icon Private Equity (www.iconpe.com)
Moscow-based Icon Private Equity invests primarily in Russia and Ukraine. Their investment strategy involves seeking controlling interest in their portfolio companies; at times investing up to USD 300 mln, its typical range is from USD 50 to 200 mln. The holding period ranges from three to five years, after which it seeks exits either by IPOs or strategic partnerships.