Investor News

Răzvan Rat, deputy general director of BRK Financial Group, says that the listing of DN Agrar Group SA, a group of companies with a Dutch majority shareholder that operates in fields such as animal husbandry, agricultural plant production, services in agriculture, logistics, transport, tourism and services business and management consultancy, would take place at the end of January or the beginning of February.

According to the calculations made by ZF, the company would start trading on the AeRO market of BVB at an anticipated capitalization of 96 million lei.

Recently, the group completed the takeover transaction for the Lacto Agrar SRL farm, worth 4.5 million euros, according to ZF information.

At the end of December 2021, DN Agrar received the favorable opinion from the authority of the Romanian Competition Council for the acquisition of the Lacto Agrar farm from the Dutch Investment Fund Eurolapte BV.

The funds of 24.8 million lei attracted from investors following a private placement in July 2021, through which the company sold 25.7% of the share capital, were used for the acquisition of the Lacto Agrar farm, according to the objective established in the issue prospectus .

Jan Gijsbertus de Boer, CEO and Chairman of the Board, controls, through the Dutch company AM Advies BV, the difference of 74.3% of the share capital of DN Agrar Group.

During July 27-28, 2021, subscription forms were collected and accepted from more than 100 investors for a number of 13.6 million shares, with a nominal value of 0.2 lei and a price of subscription of 1.81 lei per unit.

The share offer was brokered by BRK Financial Group, as an authorized consultant. The company is due to enter trading in the coming weeks.

“The new ownership that DN Agrar Group SA has in Lacto Agrar SRL strengthens our efforts to develop the company. We want to increase investors’ interest in the Romanian agribusiness sector. Thus, we bring more value to both our customers and our shareholders”, says Jan G. de Boer, CEO and Chairman of the Board of Directors of DN Agrar Group.

At the end of December 2021, this transaction was registered at the National Trade Registry Office, and currently DN Agrar fully owns the share capital of the Lacto Agrar farm.

Thus, the financial position recorded on December 31, 2020 of the group of companies owned by DN Agrar Group, with a turnover of 38.2 million lei and fixed assets of 57.6 million lei, will added the financial performance of the Lacto Agrar farm, with 32.5 million lei in turnover and 30.15 million lei in fixed assets, recorded at the end of 2020.

Before the takeover of Lacto Agrar, plant production, animal husbandry production and farm management were integrated into the agribusiness of the DN AGRAR group of companies, so that after the completion of the transaction there is no need for a transition process of the production and management activities carried out within the farm’s activity .

Located in Hunedoara county, Lacto Agrar SRL currently owns a herd of 3,500 cattle and 1,749 hectares, of which 1,445 hectares are cultivated. On the current structure, respectively with the integration of Lacto Agrar into the group, the milk production capacity at its own farms will reach an estimated 90,000 liters of milk per day, being currently the third player in the market.

“With the signing of this partnership, we are entering a new stage of development, becoming a group of companies that make their performance transparent – which represents an increased commitment on our part to customers, employees and investors of DN Agrar Group”, says DN Agrar Group CEO Jan G. de Boer.

The DN Agrar group of companies was established in Romania in 2008, with the opening of the first member companies – DN Agrar Group SA and DN Agrar Cut SRL. Later, the companies DN Agrar Trading SRL, DN Agrar Service SRL, DN Agrar Prodlact SRL, DN Farm Concept SRL, DN Agrar Straja SRL, DN Agrar Bio SRL, DN Agrar Greenfield SRL, DN Agrar Logistics SRL and Pensiunea Casa Buna were also established. SRL.

In 2020, DN Agrar Group achieved a net profit of 5.5 million lei, up 65% compared to 2019, in the context of businesses of 38.2 million lei, plus 4.2%. Last year, the group’s debts reached 50.7 million lei.

For the year 2021, i.e. after taking over the Lacto Agrar farm, the group with 162 employees on average estimates a net profit of 9.2 million lei on businesses of 78 million lei.