April 19 (SeeNews) - US-based PHI Group, a company focused on acquisitions and investments in natural resources, energy and agriculture, said on Wednesday it will partner with Romania-based Maxagro Group and may acquire a majority stake.
PHI Group and Maxagro signed a memorandum of understanding to develop an organic farming programme in Timis county, in western Romania, PHI said in a statement.
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The memorandum also envisages that PHI Group will consider the potential acquisition of a majority interest and investment in Maxagro as a way to facilitate mutual growth.
PHI Group could also decide, under the memorandum, to recapitalize Maxagro to acquire additional farmland and grow its business and/or to take Maxagro public in the U.S. and European stock markets, either directly or indirectly, to create a platform for it to access the capital markets for further growth and expansion.
"We are very impressed with Maxagro’s management, operation and track record and strongly believe that by cooperating with each other we will be able to combine our strengths to create additional value for both companies otherwise not possible," PHI Group's chairman and CEO, Henry Fahman, said.
Other possibilities of growth that PHI could explore under the memorandum are: introducing new products and technologies to Maxagro, transferring of farming technologies and organic farming techniques, introducing new markets for its products and assisting the company in its corporate strategy through internal growth and mergers and acquisitions.
"We look forward to working with PHI Group to access international capital markets in as well as take advantage of existing acquisition opportunities, further grow our business and also develop our own organic farming program which we believe will add significant enterprise value in the long run," Maxagro Group founder and chairman, Ianco Zifceak, said.
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 company's 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.