Vitebskoblimushchestvo Committee: Vitebsk region is selling shares of agricultural enterprises through a tender for the first time under Decree No. 399
For the first time in the Vitebsk region, the sale of securities of a loss-making agricultural enterprise is being organized using the mechanisms and tools of Decree No. 399 "On Financial Recovery of Agricultural Organizations" with the aim of attracting investments for its development, the committee noted. The Lepel district is ready to exit the share capital of "Chereyshchina" by selling its fully owned shares in the authorized fund of OJSC. Almost 2.2 million shares are put up for tender, with the market value of the securities package determined at over Br4.1 million.
Among the sale conditions are the preservation of the enterprise's specialization in agricultural production, investment of at least Br10 million in the development of the joint-stock company's material and technical base within 1 year from the date of the share sale and purchase agreement, preservation of up to 90% of the workforce until 2025, as well as unchanged social guarantees, and an increase in the average salary level at the enterprise, which should not be lower than the average for the district. In addition, the new shareholder undertakes to ensure a cattle population of at least 2.1 thousand heads, an increase in the productivity of the dairy herd (annual milk yield at a level not lower than the national average), as well as the break-even operation of OJSC until 2025 inclusive.
At the same time, Decree No. 399 provides for a number of preferences for loss-making agricultural organizations, including deferral of debt repayment and preferential lending, the committee recalled.
To participate in the tender, potential investors must submit documents, including tender proposals, to the organizer no later than April 19. The winner will be the participant whose proposals, according to the commission's findings, meet or improve the tender conditions. The new shareholder will also have to reimburse approximately Br16.5 thousand for the costs of independent asset valuation.
OAO "Chereyshchina" specializes in the production of livestock products, grain and leguminous crops, and rapeseed oilseeds. As of January 1, 2021, the area of agricultural land is almost 3.1 thousand hectares, including arable land - about 2.2 thousand hectares. The organization employs 124 people, or 11.1% of the total number of specialists employed in agricultural production in the Lepel district.