The strategic focus of the group is on strengthening its leading position and further horizontal and vertical expansion in the region. For this purpose the company would like, for example, to increase its land bank from 33,700 ha to 150,000 ha by 2016 and double the operational efficiency of land usage by the end of 2015.
The gross proceeds from the sale of new shares, estimated at about USD 44 million (more than PLN 128 million), will be used primarily to carry out the group’s investment programme going forward and to finance acquisitions. The group’s business plan envisages use of the funds for the following purposes, among others:
- Further land bank expansion by about 20,000 ha by the end of 2011 (investment of approximately USD 10.7 million). The company has already signed an option agreement to acquire a further 10,360 ha, to be exercised by the end of August 2011.
- Working capital that will be used to cover operational needs related to land bank expansion (estimated investment of USD 10 million).
- Further investments into modernization of current machinery and for equipment for newly acquired land (totalling about USD 6.5 million).
- Acquisition of a modern elevator (investment about USD 6 million).
- Further investments in the vegetables production segment (totalling about USD 4.2 million).
- The USD 3.5m remainder will be used to help increase irrigated acreage by 2,000 hectares and to pay off outstanding, high interest-bearing lease payments for machinery and equipment.