Mriya CEO assesses cost of company in assets at $150 mln
Mriya agroholding CEO Simon Cherniavsky assesses the cost of the company in assets at $150 million with a prospect of growing to $250-350 million depending on investment climate and vision of a potential buyer.
"If we take into account the cost of assets, our [capitalization] is around $150 million. If we speak about the cost of the entire business using the assessment of future money flow, this is another case. Here we should see how I am ready to give now for the profits that I would be able to receive in several years," he said in an interview with the Business publication.
Cherniavsky said that the company can earn $50-60 million a year on the agroholding's land bank.
"For our sector the 5-6 multiplier is used. This is $250-350 million depending on investment climate and vision of a potential buyer. This is rather fair price for the effective land bank," he said.
Cherniavsky expects that starting from 2018 when the restructuring is finished and the position of the company becomes more stable, the cost of the company would grow.
He said that Mriya is at a final stage of implementing agreements with three out of four secured creditors.
"We expect that by the end of the year we will finish this process with our fourth secured creditor. As for unsecured loans, the procedure is complicated and requires approval of many financial institutions. Large works has been down: an arrangement was made with all key creditors and a restructuring plan was drawn up jointly with them, which we are implementing now," he said.
He said that in September, the holding will launch debt restructuring in Ukraine via bankruptcy of some key companies.
"This is made so that creditors can formally approve the debt restructuring and waving of the old credit," Cherniavsky said.
Mriya is a leading agricultural producer in Ukraine focusing on crop cultivation. Today Mriya had 180,000 hectares of land under management.