VIYM exits Agro Alliance on schedule

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VIYM exits Agro Alliance on schedule

VIYM investment firm, which manages direct investment funds in the CIS and Europe, has announced that it is selling its stake in the leading Russian rice importer and trader, producer of premium quality packed cereals Agro Alliance, through a private placement in favour of one of the company's shareholders. No details regarding the stake or the transaction value have been made public.

In 2010, VIYM made a capital investment in the Agro Alliance agricultural group, becoming a minority shareholder. During VIYM's partnership with the group, Agro Alliance has successfully implemented a series of investment projects aimed at boosting its capitalisation. In 2011-2012, the company commissioned a modern production complex in southern Russia that includes a rice processing plant, packing production, storage, elevator, grain cleaning and drying facilities, while also significantly diversifying its resource base by acquiring paddy fields in Krasnodar Territory's Abinsk district.

One of the key phases in the cooperation between Agro Alliance and VIYM was the December 2014 launch of a leading edge buckwheat processing facility in the Orlov Region's Mtsensk district.

“Agro Alliance is the largest player and one of the leaders on the processed food market. It is fast-growing mid-cap companies like this that form the core of our investment portfolio. Throughout our cooperation, the company has significantly increased its assets, and company revenue doubled. However, representing our investors’ interests, we are following our planned strategy of ceasing to be a shareholder in this company as our investment term expires. We are glad that we had the opportunity to be part of this project, and are confident that the company will continue to successfully develop its business,” said Dmitry Schuetzle, Managing Director at VIYM.

“It is unlikely that our company would have charted these successes without VIYM’s involvement. We were looking for investors who shared our vision for our company’s future and development strategy. In the investors VIYM represents, we found the support we needed, making it possible for our company to develop rapidly, opening up new avenues of opportunity, under the limits of long-term borrowing,” said Viktor Kozyrev, CEO at Agro Alliance.

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