Ekosem-Agrar AG Sells Assets to Russian EkoNiva Group

Russia 02.01.2025

Source: DairyNews.today

In a significant restructuring move, Germany's Ekosem-Agrar AG has sold its assets to the Russian agricultural holding EkoNiva Group. The contracts for the transaction were finalized last week, and the purchase price has already been transferred to foreign accounts belonging to the sellers. While the exact financial terms remain undisclosed, the deal consolidates control under Stefan Dürr, founder and president of EkoNiva, and a key shareholder of both entities.

Ekosem-Agrar AG Sells Assets to Russian EkoNiva Group

Details of the Transaction

The agreement involves the sale of all shares held by Ekosem-Agrar AG in its Russian subsidiaries to OOO "EkoNiva." Majority ownership of OOO "EkoNiva" now rests with Ekosem-Agrar AG shareholders, including Dürr, who is a Russian citizen. The move ensures that Dürr retains control over the group’s extensive operations.

As part of the deal, the companies have reached an agreement to restructure two corporate bond issuances by Ekosem-Agrar AG:

- **2012/2027 Series (ISIN: DE000A1R0RZ5)**

- **2019/2029 Series (ISIN: DE000A2YNR08)**

These bonds will be redeemed by a Special Purpose Vehicle (SPV) at €300 per bond. The restructuring, approved by bondholders earlier this year, was critical to the completion of the asset sale.

Operational Implications

The sale marks a strategic shift for Ekosem-Agrar AG, which has faced increasing operational challenges due to geopolitical and economic pressures. According to Dürr, “The regional integration of the holding company with the Russian operations was essential for the group's continued survival and the successful restructuring of its bonds.”

The group is expected to finalize the asset transfer in the coming weeks after navigating regulatory approvals across several jurisdictions. The company plans to provide updates once the process is complete.

EkoNiva: A Leader in Russian Agriculture

EkoNiva Group is one of Russia’s largest agricultural enterprises, managing over 632,400 hectares of farmland and producing 3,700 tonnes of raw milk daily. With a livestock population exceeding 248,000, including more than 115,000 dairy cows, the group is the country's largest milk producer. It also operates four processing plants and a significant seed production business.

Founded by Stefan Dürr in 1994, EkoNiva has played a pivotal role in modernizing Russian agriculture. Dürr, who began his career in Russia as a trainee in the 1990s, has been instrumental in fostering German-Russian agricultural collaboration. In 2009, he received the German Federal Cross of Merit for his contributions.

Broader Context

The sale underscores the challenges facing international agricultural businesses operating in Russia. Dürr and his team have been navigating a complex geopolitical environment to maintain operations and secure financial stability for stakeholders. The integration of Ekosem-Agrar AG's assets under EkoNiva is seen as a step toward consolidating operations and preserving the group's market leadership in Russia.

As the asset transfer progresses, stakeholders will closely monitor how the group adapts to the shifting agricultural and economic landscape.