Milkiland may sell Ostankino Dairy Plant to Unicredit
09.10.2015 463 views
According to media reports, Milkiland has put up the Ostankino Dairy Plant for sale because of debts.
As it became known to the press, the plant was collaterized for a loan, while its debt reached some $100 million – the intended sale of the asset is most likely associated with these reasons. It should be recalled that Milkiland ended last year with a loss of EUR72.4 million and paid no dividends to its shareholders.
The estimated cost of the dairy plant is 55-65 million dollars – this is approximately equal to Milkiland’s net income after taxes for 7 years. According to media reports, the plant was offered to the Unicredit bank.
Milkiland make a name for itself on the market in 1994. Currently its assets are located in Russia, Ukraine and Poland, and the total production capacity of the Group is 1 million tones of dairy products annually.