Ekosem-Agrar AG Announces Plans for Restructuring and Investment Initiatives Amid Geopolitical Tensions

Ekosem-Agrar AG, in a decisive move, has announced its plan to convene meetings for noteholders of its EUR 78 million and EUR 100 million bearer bonds, revealing a restructuring concept that seeks approval for a sale and transfer mechanism involving a Cypriot purchasing company. Holders of these bonds will be offered a purchase price of 30% of their nominal value, with the backing of investors who are also deliberating equity participation.

The noteholders' meetings are scheduled for 2 May 2024 in Wiesloch, with invitations already dispatched. This step is part of the company's broader strategy to navigate the challenging geopolitical and economic landscape, which includes the proposed divestment of shares in Russian intermediate holding companies. These shares, both direct and indirect, are earmarked for sale to a Russian acquiring entity, owned by current shareholders, to consolidate the operational facets of the Ekosem Group.

Additionally, Ekosem-Agrar AG is in the advanced stages of negotiations with equity investors who are considering a significant infusion of up to EUR 100 million into the Russian acquiring company. The fruition of these investment discussions is contingent upon the successful restructuring of the aforementioned bonds and the seamless transfer of shares in the intermediate holding companies.