Vitebsk Regional Property Committee: Shares of agricultural enterprises are being sold by tender for the first time in the Vitebsk region under Decree No. 399

The tender for the sale of a 57% stake in the charter capital of OJSC "Chereyshchina" (Lepel District) is scheduled for April 23 and will be held at the Lepel District Executive Committee, as reported by the Vitebsk Regional Property Committee.

For the first time in the Vitebsk region, the sale of securities of a loss-making agricultural enterprise is being organised using the mechanisms and instruments of Decree No. 399 "On the Financial Recovery of Agricultural Organisations" with the aim of attracting investment for its development, the committee noted. Lepel District is ready to exit the share capital of "Chereyshchina" by selling its entire stake in the OJSC's charter capital. The tender offers nearly 2.2 million shares for sale, with the market value of the securities package estimated at over Br4.1 million.

Among the sale conditions are the preservation of the enterprise's specialisation 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 purchase agreement, preservation of up to 90% of the workforce until 2025, as well as unchanged social guarantees and an increase in the average wage level at the enterprise, which should not be lower than the district average. In addition, the new shareholder undertakes to ensure a cattle population of at least 2.1 thousand head, an increase in dairy herd productivity (annual milk yield not lower than the national average), and the break-even operation of OJSC until 2025 inclusive.

At the same time, Decree No. 399 provides a number of preferences for loss-making agricultural organisations, 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 organiser no later than April 19. The winner will be the participant whose proposals, according to the commission's findings, meet the tender conditions or improve upon them. The new shareholder will also have to reimburse approximately Br16.5 thousand for the costs of independent asset valuation.

Open Joint Stock Company "Chereyshchina" specializes in the production of livestock products, grain and leguminous crops, and oilseed rape. 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.

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