7 Dec 2023 15:03

Kernel delisting from Warsaw Stock Exchange being prolonged, may be completed in Jan

MOSCOW. Dec 7 (Interfax) - The delisting of Kernel, one of Ukraine's biggest agro-industrial groups, from the Warsaw Stock Exchange is again being prolonged and is expected to be completed in January 2024.

"Based on information received from the Polish Financial Supervision Authority (KNF), the process of removing shares from trading on the Warsaw Stock Exchange is being prolonged due to the analysis of further evidence," Ukrainian media reported, citing a Kernel stock exchange filing.

KNF said at the end of November that it might need more time to reach a decision on delisting shares of the Ukrainian holding, clarifying that when permission to delist is obtained would largely depend on interaction with Luxembourg's financial regulator, CSSF.

Namsen Limited, controlled by Andrei Verevsky, Kernel's CEO and majority shareholder, acquired 1.2 million of the company's shares on November 23 , which, taking into account the treasury shares, increased Verevsky's stake to approximately 94.37%. Verevsky earlier this year increased his stake from 41.3% to 93.67% through a share buyback, the company's planned delisting from the Warsaw Stock Exchange and a supplementary share issue in the summer.

Minority shareholders have said they planned to appeal against the supplementary share issue with the CSSF as well as in the courts. Private investor Pavel Boiko said on November 17 that a group that brought together "more than a thousand investors from all over the world, from the smallest to 1 million shares," had filed a lawsuit "on unlawful manipulation, statements and internal decisions by Kernel regarding the on delisting," and that a second lawsuit was being prepared to cancel the issue, which quadrupled the number of shares.

Kernel is one of Ukraine's largest producers of bottled vegetable oil and a major producer and exporter of sunflower oil. The group also cultivates and sells other agricultural products.

Kernel reported a net profit of $299 million for financial 2023, compared to a net loss of $41 million a year earlier. The group's revenue fell 35% to $3.455 billion, while EBITDA jumped 2.5-fold to $544 million.