Saudi Arabia's United Farmers Holding Company (UFHC) plans to buy a 100% stake in Continental Farmers Group plc (CFG, the Isle of Man), a large agricultural company with assets in Ukraine and Poland, and has already got approval from CFG's board, which recommended its stockholders accept the terms of the deal, the UFHC has said in a statement on the London Stock Exchange.

According to the statement, UFHC offers CFG shareholders 35 pence in cash for each CFG share and up to a further 2 pence in cash for each CFG share by way of deferred consideration (the basic offer) unless they elect to receive 36 pence in cash for each CFG share (the cash alternative).

Taking into account the issue of around 2.778 million CFG shares at approximately GBP 58.2 million, the price will be GBP 61.5 million in case of the basic offer or GBP 59.9 million under the cash alternative.

The cash alternative represents a premium of 50% to the market price, CFG board said.

UFHC was set up on March 24, 2013 by a consortium of Saudi Agricultural and Livestock Investment Co., Saudi Grains and Fodder Holding LLC and Almarai Company.

Continental Farmers Group has been operating in Ukraine since 2006.

In 2012, CFG increased its proceeds by 23% year-over-year to EUR 30.7 million, EBITDA by 9% to EUR 7.3 million. However, its net profit fell almost by half to EUR 1.55 million.

In 2013, the company increased its land bank in Ukraine by 49% to 23,680 hectares.