(Finance) – BFa holding company listed on Euronext Milan and active in the agro-industrial sector, announced that the subsidiary SIS Italian Seed Society (SIS)active in the seed sector and, in particular, in the production, processing and marketing of seed products, has signed the contracts for thepurchase of the shareholding representing 69.5% of the share capital of Kaiima Sementes (KAIIMA).
KAIIMA is one Brazilian company which deals with genetics, production and sale of castor seeds, which in 2023 achieved a turnover of 5.1 million euros and an EBITDA of 1.6 million euros.
On the basis of the investment agreement signed by BF, Consorzi Agrari d’Italia and SIS with Eni Natural Energies (ENE), company controlled by EniENE is entry into the share capital of SIS for a total amount of 25 million and SIS and ENE have stipulated a ten-year commercial framework agreement concerning (i) the creation and launch of a non-food seeds division within SIS (Agro-Energy Division) , with the expectation of allocating the resources deriving from the entry into the share capital of SIS to the creation of the Agro-Energy Division as well as to possible operations aimed at expanding the production capacity and know-how of SIS, in addition to (ii) mutual obligations and rights regarding the supply of seeds by ENE.
The consideration for the purchase of the shareholding was determined as a total of 27.2 million euros and will be paid by SIS, amounting to 23.5 million euros, on the date of execution of the operation. The remaining 3.7 million will be retained by SIS in its own interest-bearing account for five years from the execution of the contracts, acting as a guarantee for the payment of sums possibly owed to SIS by the sellers following compensation requests, and will be released to the sellers pro rata on an annual basis, subject to certain terms and conditions.
It is expected that SIS will finance the purchase of the stake for 20 million with the use of financial resources deriving from ENE’s investment in the share capital of SIS and for the remainder with own means.