VIYM to sell Agro Alliance stake in private placement

VIYM is exiting its stake in Agro Alliance, a Russian rice importer and maker of packed cereals, via a private placement. No financial terms were disclosed. VIYM made an undisclosed investment in Agro Alliance in 2010.

PRESS RELEASE

LONDON, April 7, 2015 /PRNewswire/ –VIYM, a direct investment funds management firm, has announced that it is selling its stake in the leading Russian rice importer and trader, producer of premium quality packed cereals Agro Alliance, through a private placement. No details regarding the stake or the transaction value have been made public.

In 2010, VIYM made a capital investment in the Agro Alliance agricultural group, becoming a minority shareholder. During VIYM’s partnership with the group, Agro Alliance has successfully implemented a series of investment projects aimed at boosting its capitalisation. In 2011-2012, the company commissioned a modern production complex in southern Russia that includes a rice processing plant, packing production, storage, elevator, grain cleaning and drying facilities, while also significantly diversifying its resource base by acquiring paddy fields in Krasnodar Territory’s Abinsk district.

One of the key phases in the cooperation between Agro Alliance and VIYM was the December 2014 launch of a leading-edge buckwheat processing facility in the Orlov Region’s Mtsensk district.

“Agro Alliance is a key player in the Russian processed food market. The successful implementation of investment projects during VIYM’s partnership are a testament to its potential in becoming a market leader. As our investment term expires and we cease to be a shareholder, we remain confident that the company will continue to grow and develop its business,” said Andrey Yakunin, partner at VIYM.

“It is unlikely that our company would have charted these successes without VIYM’s involvement. We were looking for investors who shared our vision for our company’s future and development strategy. In the investors VIYM represents, we found the support we needed, making it possible for our company to develop rapidly, opening up new avenues of opportunity, under the limits of long-term borrowing,” said Viktor Kozyrev, CEO at Agro Alliance.

About Agro Alliance
Agro Alliance is one of Russia’s leading agricultural holdings with production centres across the country. The company is one of the three market leaders for packaged cereal, and is the country’s largest importer and trader of rice and beans.

About VIYM
VIYM is an independent partnership dedicated solely to private equity services for international investors seeking investment consulting, deal origination and asset management in direct investment in real estate in Greater Europe and fast growing small and mid-cap companies in Russia and the CIS.