April 11 (SeeNews) - Romanian agribusiness company Holde Agri Invest finalised the acquisition of a 2,100 ha farm worth 10.25 million Romanian lei ($2.263 million/2.074 million euro) in Contesti, in the southeast of the country, the company said on Monday.
Holde Agri Invest will pay only 250,000 lei of the price now, it said in a press release, adding that the remainder consists of liabilities, which it plans to significantly reduce over the next four years.
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The plots of land comprising the Contesti farm have already been leased, Holde added. The land will be put under barley, corn, wheat, sunflower and rapeseed.
The acquisition comes as a follow-up to the company’s 1.4 million lei investment earlier this year, as part of which Holde Agri expanded its portfolio with a 440 ha farm near Rosiori, southeastern Romania.
“Our business model remains the same – we identify crop farms that need additional capital or have the potential to optimize their performance and turn them into operational, modern, and efficient farms," Holde Agri Invest CEO Liviu Zagan commented.
Holde Agri Invest was founded in 2018 and currently operates a farmland portfolio of almost 12,000 hectares. Its core farms are Rosiori and Videle, in Teleorman county; Frumusani, in Calarasi county; and the newly acquired Contesti, in Dambovita county.
According to the company’s annual financial statement filed with the Bucharest Stock Exchange, it recorded a net profit of 6.7 million lei for 2021.
Holde Agri Invest shares [BSE:HAI] have been trading on the AeRO market of the Bucharest Stock Exchange since October 1, 2020.
They traded up 0.81% at 1.87 lei by 11:43 CET.
(1 euro = 4.94 Romanian lei)