May 31 (SeeNews) - US-based PHI Group, a company focused on acquisitions and investments in natural resources, energy and agriculture, said on Wednesday it has signed a definitive agreement to acquire a 51% stake in Romanian farming company Maxagro.
The transaction will be paid in cash or stock, as Maxagro desires, and is scheduled to close on August 8, with the final purchase price to be determined by both parties after the completion of an independent appraisal and the financial audits of the Romanian company, PHI Group said in a statement.
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PHI Group is also committed to raising $50 million (44.7 million euro) for Maxagro to grow its business, including purchasing and leasing more farmland and launching new product lines, the US group said.
“We look forward to working with PHI Group to further grow our business and carry out a long-term organic farming program by using PHI Group’s proprietary technologies to increase yields and enhance quality for our crops,” Ianco Zifceak, founder and chairman of Maxagro Group, said in the statement.
The US firm plans to establish Maxagro International, Inc. as the holding company for the acquisition of Maxagro and use it as a platform to further expand organic farming in Romania and other parts of Europe.
“We are delighted to work with Maxagro’s management by combining our strengths and expertise to meet the growing demand for healthy organic agricultural products in Europe,” the CEO of PHI Group, Henry Fahman, noted.
Maxagro and PHI Group have also agreed to jointly cultivate specialty crops for food and medicinal usage in the next few months, PHI Group added.
In April, PHI Group and Maxagro signed a memorandum of understanding to develop an organic farming programme in Timis county, in western Romania.
Founded in June 1982, in Nevada, USA, PHI Group primarily focuses on acquisitions as a principal and invests in select industries and special situations that may substantially enhance shareholder value, according to information posted on the corporate website. PHI Group also provides merger and acquisition advisory services through its wholly-owned subsidiary, PHI Capital Holdings, Inc.
Maxagro Group was founded in 1993 and currently cultivates approximately 12,000 hectares for agricultural products and owns a livestock farm for dairy in Romania. Maxagro owns farming machinery and equipment and operates 10 silos for grain storage with a capacity of 2,500 tonnes each and a hall for storage with a capacity of 12,000 tonnes.