South of Russia, APG

About the Company

The agro-industrial group "South of Russia" is a vertically integrated structure, including enterprises engaged in the cultivation, storage and processing of grain, the production of bakery products, vegetable oil "Golden Seed" and protein meal, the production of packaging and the sale of finished products.

The structure of "South of Russia" includes nine enterprises.

History

2023: Ex-head of the Ministry of Agriculture Alexander Tkachev bought "South of Russia"

In early September 2023, it became known about the sale of the main producer of sunflower oil in the Russian Federation "South of Russia" to the Agrocomplex named after N. I. Tkachev, owned by the ex-head of the Ministry of Agriculture Alexander Tkachev. As part of this transaction, the leadership has already changed in the group being sold: on August 30, 2023, Kamil Muzafarov became the general director of the head structures of the MEZ South Rus LLC and South Rus LLC. As the head of the "South of Russia," he replaced Dmitry Kislov, the son of the founder and owner of the group, Sergei Kislov, according to the data of the Unified State Register of Legal Entities (USRUL).

As Kommersant writes, Muzafarov in July 2023 established Resource LLC in Moscow with the main activity of holding companies. This structure can become a buyer of the "South of Russia," sources said. As follows from the Unified State Register of Legal Entities, on July 20, 100% of the Resource was pledged to the Moscow Credit Bank (MKB), and on July 21, 2023, the share of the South of Russia in the MEZ South of Russia transferred the pledge of the MKB.

Former head of the Ministry of Agriculture Alexander Tkachev bought the main producer of sunflower oil in the Russian Federation

As Dmitry Gabyshev, Managing Director of Peregrine Capital, explained, Resource thus "attracts money from the bank, pledging shares, but since the empty company has no assets, the bank receives collateral and shares in the purchased structure." According to the publication, as part of the transaction, the value of the "South of Russia" can be estimated at 40 billion rubles excluding debt.

"South of Russia" unites nine creameries, elevators, a port terminal in the waters of the Azov-Black Sea basin. The portfolio of brands includes the brands "Golden Seed," "Zlato," "Avedov," etc. In the 2021/22 season, "South of Russia" provided 12% of the production of raw sunflower oil and 28% bottled

According to Kommersant on September 4, 2023, last season South Rus was the largest oil exporter, shipping more than 399 thousand tons. The group also exports grain.^[1]

2022: Sale of 200 thousand hectares to the Agrocomplex named after N.I. Tkachev

September 12, 2022 it became known about the sale of the land bank of the agricultural holding "South of Russia" to structures associated with the Agrocomplex named after N. I. Tkachev. We are talking about 200 thousand hectares. This is the largest deal with agricultural land since 2017.

A record appeared in the Unified State Register of Legal Entities that the owner of 99.99% of Agrosoyuz South Rus Holding LLC, which is the head structure of the agricultural division of South Rus, was LLC. Agricultural technologies The founder and general director of Agrotekhnologii Andrei Sheikin is the head of the farm in the village of Vyselki Krasnodar Krai, where the headquarters of the Tkachev Agrocomplex is located.

Agricultural complex of the ex-head of the Ministry of Agriculture closed a deal with agricultural land

According to Kommersant, as a result of the deal, the company of the former head of the Ministry of Agriculture Alexander Tkachev may become the largest owner of agricultural land in the country, its land bank has grown to 1.1 million hectares. According to Sovekon estimates, the assets of the South of Russia could cost 20-30 billion rubles.

For the company "South of Russia," the cultivation of raw materials can be considered a non-core business. Withdrawal from this market segment will not affect the main activities of the company, experts say.

Sovekon director Andrei Sizov believes that in the context of limited exports of oilseeds, processors will not have a shortage of raw materials at low prices in the short term. According to Sovekon, purchase prices for a new sunflower crop start at 18,000 rubles per ton with an average cost of more than 25,600 rubles per ton.

Managing Director of BEFL Vladislav Novoselov believes that the trend of increasing the land bank among the leaders of the BEFL rating will continue. Demand, among other things, supports the expectation of rising land prices, as well as a small number of alternatives for investment, he added. According to Andrei Sizov, building up a land bank for large agricultural holdings will not give economies of scale, but will complicate management.^[2]

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