Ukrainian agribusiness group, Kernel, announced it is selling its last remaining Russian asset – a 50 percent stake in the Taman grain terminal, which is expected to fetch between $70 million and $150 million.
Glencore, the owner of the other 50 percent of the terminal is expected to be the buyer of Kernel’s holding.
Both Kernel and Glencore acquired the Taman site in 2012 as equal partners from the Etko Group for $265 million. It has grain handling capacity of 3.6 million tons per year, however, last year, the facility handled a record 3.38 million tons, of which 35 percent was Kernel’s share.
This season, shipments through the site are down 14 percent with 2.53 million tons of grain shipped for the July-March time period.
The site also has an elevator with storage capacity of 80,0000 tons with the potential to expand its capacity to 220,000 tons.
In addition to the Taman site, Kernel, which produces sunflower oil, grows grain and oil crops, and exports corn, wheat and barley, owns Transbulkterminal, a terminal at the Ukrainian port of Illichivsk with a yearly handling capacity of 4 million tons.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at email@example.com.