Alpcot Agro and Alpcot Capital Management agree upon new terms of agreement
Alpcot Agro AB (publ) (“Alpcot Agro”, “the Company”) and Alpcot Capital Management Ltd (“ACM”) have agreed to replace the Management agreement between Alpcot Agro and ACM with a new agreement. During a transition period which will last during the remainder of 2013, ACM will reduce its services to Alpcot Agro. For services provided in 2013, Alpcot Agro will pay a remuneration of SEK 15 million to ACM, of which SEK 9 million in cash. This means that Alpcot Agro will reduce its advisory related costs from ACM by SEK 24.5 million in the period up to 31 January 2014, compared to the previous Management agreement.
When Alpcot Agro was founded in November 2006, the Company entered into a Management agreement with ACM. The purpose of the agreement was that ACM would serve as the Company’s investment adviser and execute its investment strategy during a seven-year period expiring 31 January 2014.
Following a joint review of the Management agreement, Alpcot Agro and ACM have agreed to replace the Management agreement in its current form with a new agreement. During a transition period, ACM will gradually reduce its services to Alpcot Agro. The transition period lasts during the calendar year 2013 in order to ensure the completion of important ongoing projects. For services that are to be rendered during the transition period, a fee of SEK 15 million will be paid, whereof SEK 9 million in cash and the remainder in promissory notes that expire on 31 October 2014. The agreement means that Alpcot Agro will reduce its advisory related costs from ACM by SEK 24.5 million up to 31 January 2014, in comparison to the previous Management agreement.
As part of the expiration of the Management agreement, Alpcot Agro will change its name. This matter will be considered at the Company’s Annual General Meeting which is scheduled to take place on 16 May 2013.
Simon Hallqvist, Chairman of the board of Alpcot Agro, comments:
”We are happy to have reached a mutual agreement with ACM. ACM has played a central role in the development of Alpcot Agro ever since the company was founded. More recently, functions have to an increasing extent been transferred to the company and therefore this is the appropriate time to change the terms of cooperation. By gradually phasing out the cooperation in 2013, we ensure both the continuity of the operations and the successful completion of certain important projects.”
Björn Lindström, partner at Alpcot Capital Management Ltd, comments:
”Alpcot Capital Management founded Alpcot Agro in the end of 2006 and has since then focused on building a successful farming company. Despite challenging conditions at times, Alpcot Agro has developed into one of the major farming companies in Eastern Europe, with attractive assets and a favourable outlook to generate healthy profits over the coming years.”
Stockholm 28 March 2013
The Board of Directors
For further information, please contact
Simon Hallqvist, Chairman, Alpcot Agro, tel +358 405 102 760
Björn Lindström, Partner, Alpcot Capital Management Ltd, tel +44 7979 855 556
About Alpcot Agro AB (publ)
Alpcot Agro invests in farmland and produces agricultural commodities in Russia and Ukraine. The Group aims to generate an attractive return on invested capital by optimally utilizing its agricultural land bank through crop production, livestock and related operations. Shares in Alpcot Agro are listed in Sweden on the Nasdaq OMX First North exchange under the ticker ALPA and the Group’s Certified Adviser is Remium Nordic AB.