Don Agro’s shares surge after sale of subsidiaries

Shares in Don Agro surged by 55.17% to 22.5 cents on the morning of April 29, after it announced that it has entered into preliminary sale and purchase agreements (SPAs) to dispose its subsidiaries.

Don Agro International said it had entered into preliminary SPAs to sell its stakes in Don Agro LLC, Don Agrarian Group JSC and Don Muchnov LLC (the target group) to Agroholding Prostory JSC. Agroholding Prostory is a Russian-incorporated company that is in the business of cultivating crops, oilseed and raw milk production. The SPAs were entered into by Don Agro’s wholly-owned subsidiary JSC Tetra on April 26 to establish the key terms of the divestment.