Saudi livestock company acquires 13.5 million shares of MHP

SALIC currently holds 12.6% of the company's shares
calendar icon 18 September 2024
clock icon 2 minute read

MHP SE, the parent company of MHP, the leading international agro-industrial group headquartered in Ukraine, was advised that the Saudi Agricultural and Livestock Investment Company (SALIC), a wholly owned subsidiary of the Public Investment Fund of Saudi Arabia, has acquired 13.5 million shares on the market, according to a company press release.

SALIC currently holds 12.6% of the company's total outstanding shares.

MHP holds the greatest market share for its products. MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching, alongside controlling the processing, marketing, distribution and sales of its products. 

Complete vertical integration practically eliminates MHP's exposure to raw material price fluctuations since its grain production exceeds internal consumption requirements, allowing the company to be an important participant in the international commodity trade. In addition to cost efficiency, vertical integration also enables MHP to maintain strict biosecurity and to control the quality of itsinputs, and the resulting quality and consistency of its products, all the way to the point of sale. 

To support its sales, MHP maintains a distribution network consisting of nine distribution and logistical centers within major Ukrainian cities. MHP uses its own truck fleet to distribute its products, reducing overall transportation costs and delivery times.

MHP also has a leading grain cultivation business growing corn, soya and sunflower to support the vertical integration of its chicken production and increasingly other grains, such as wheat and rape, for sale to third parties. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.

The Balkans: Perutnina Ptuj (PP) is a leading poultry and meat-processing producer in the Balkans, with production sites in four Balkan countries: Slovenia, Croatia, Serbia, Bosnia and Herzegovina. PP owns distribution companies in Austria, Macedonia and Romania and supplies products to fifteen countries in Europe. PP is vertically integrated across all states of chicken meat production - feed, hatching eggs production and incubation, breeding, slaughtering, sausage production and further poultry processing.

MHP trades on the London Stock Exchange under the ticker symbol MHPC.

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