AVELLUM advises Diligent Capital Partners on acquisition of 16% equity stake in Allseeds

AVELLUM acted as the Ukrainian legal counsel to Diligent Capital Partners (“DCP”), a private equity manager, in connection with the acquisition of a 16% equity stake in Allseeds SA together with the Dutch Development Bank FMO (“FMO”). As a result of the transaction, Allseeds obtained financing to implement its ambitious growth strategy that includes the expansion of its oilseed crushing and transshipment capacities. FMO and DCP will also work with Allseeds to enhance Allseeds’ corporate governance and improve its environmental, as well as social standards.

AVELLUM advised the client on a number of transaction related issues, in particular, on the legal due diligence of the Allseeds group and transaction structure. We also provided DCP with legal support in negotiating and signing the transactional documents, as well as in the completion of the transaction.

Furthermore, we advised DCP on obtaining approval of the Antimonopoly Committee of Ukraine in connection with the transaction.

Mykola Stetsenko, co-managing partner at AVELLUM, commented on this transaction: “This transaction has once again confirmed that foreign investors are interested in Ukraine and, in particular, in its agricultural sector. We were honoured to represent DCP in this landmark transaction and wish all the best to DCP and Allseeds in achieving their ambitious common goals and setting a great example for the whole market.”

Andriy Romanchuk, associate at AVELLUM, commented the following: “This has been an incredibly complex transaction and its completion became possible due to seamless coordination of the negotiation process. Naturally, we are incredibly proud to include this deal into our portfolio of M&A deals in the agrisector.”

Allen&Overy advised Allseeds on English and Luxembourg law matters. Other firms advising on the transaction include Baker McKenzie, Deloitte, Roland Berger and CapEos.

DCP is a private equity manager focused on food and agribusiness, export-oriented businesses, and the consumer goods and services industries led by Dan Pasko and Mark Iwashko (www.diligent.capital). DCP led the deal origination and structuring and will be responsible for the management of the investment. Prior to the transaction, DCP worked with Allseeds on establishing its corporate governance system.

FMO is the Dutch development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a more than 45-year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy and agribusiness, food and water. With a committed portfolio of EUR 9.2 billion spanning over 82 countries, FMO is one of the larger bilateral private sector developments banks globally.

Allseeds is one of the largest producers and exporters of vegetable oils and meals in Ukraine. The Company operates a leading-edge multi-seeds oilseed processing plant with a capacity of 2400 MT/day for sunflower seeds (1800 MT/day for rapeseeds; 1500 MT/day for soybeans) in Yuzhny, Ukraine’s deepest port. Allseeds also provides transshipment services for vegetable oils and oilseed meals via its own terminals in Yuzhny where vessels with deadweights of over 100 000 MT and drafts of up to 14.6 m can be loaded to serve remote destinations such as China, India, and the Middle East. Allseeds has a reputation of a reliable and highly professional partner on the global agricultural markets.

The AVELLUM team was led by a co-managing partner Mykola Stetsenko with support from associates Andriy Romanchuk, Dmytro Symbiryov, Olga Tersina, Yuliia Chelebii-Kravchenko, and Oleksandr Kulykovskyi. Associates Yaroslav Medvediev, Andrii Gumenchuk, and Uliana Lutchyn advised on antitrust matters.