FMO to Partially Finance Purchase of Ukrainian company Chumak
KYIV. Dec 31 (Interfax-Ukraine) – The Dutch development bank FMO at the end of August this year provided $ 35 million in long-term financing to the Cypriot holding company Flottotrade LLC, owned by Wilmar International Limited, Delta Exports and Pinnama Holdings, to finance part of the cost of acquiring the Ukrainian food manufacturer Chumak.
"FMO will provide up to $ 35 million in long term financing to the client. The funding will be used to finance a part of the total acquisition costs for Chumak, a top fast-moving consumer goods producer in the south of Ukraine. The acquisition will potentially help unlock Chumak's full potential in the domestic market by increasing Chumak's market share in Ukraine and help expand Chumak's distribution to foreign markets, thereby generating more local tax revenues and jobs in an area with high unemployment rates," the bank said.
As reported, Dragon Capital investment group in May 2019 announced the sale of its entire stake in Chumak to Delta Wilmar, the Ukrainian branch of Wilmar International, one of the largest agro-industrial companies in Asia.
Chumak is a large food manufacturer that produces ketchup, mayonnaise, tomato paste, sauces and pasta. The company was founded in 1996 by Swedish businessmen in Kakhovka (Kherson region) and today is one of the largest tomato processors in the CIS with an annual processing capacity of up to 100,000 tonnes.