Russia: Kellner's promised land – and soil

The largest Czech investment firm PPF Group has completed the acquisition of Russian agricultural hold Rav Agro-Pro, which disposes of  huge tracts of arable land in the fertile Chernozem (“Black Earth”) region in the southwest of European Russia. PPF says the investment is at least mid-term and doesn’t rule out a possible IPO. While the country’s agricultural sector has huge growth potential, powerful allies in the government are also key to success. PPF owner Petr Kellner has been cultivating such ties since the first wave of privatization in the early 1990s.

PPF confirmed to Czech Position that Dutch-registered Bavella BV (in which the PPF Group has an 80-percent stake and UK-registered investment firm PR Capital Group has 20 percent), purchased 100 percent of Rav Agro-Pro shares from Kemp Commerce Ltd., a company registered in the British Virgin Islands. But PPF declined to disclose the value of the deal or who represented Kemp Commerce Ltd. in the negotiations and Rav Agro-Pro is also keeping details of its holdings quiet.       

that as chairman of the board Chvatál represented one of the company’s private shareholders — with no connection to PPF. 

Rav Agro-Pro was established in 2005, shortly after land reforms in Russia enabled foreign subjects to purchase agricultural land. In July 2008, when the company announced plans for an IPO, which did not take place, Reuters reported that the owner of 99.67 percent of the company’s shares was Russian Agricultural Ventures, the ownership structure of which is as follows:

RP Capital (31.4 percent) Colglide Ltd.— controlled by Israeli grain trading company Rodemco, owned by Roni Yitzhaki (31.4 percent) Lite Venture Holding Ltd. (16.1 percent) Kosmoxan Investments Limited, owned equally by Igor Khaifits and Gadi Bittan, who in 2010 at least was Rav Agro-Pro’s managing director (11.1 percent) Black River Commodity Investment Partners — one of the funds of Black River Asset Management, a group of funds belonging to US giant Cargill (6 percent)

Ladislav Chvatál, who has worked for PPF for 17 years, was appointed to the Rav Agro-Pro board in 2009. “His task was obviously to buy up the fragmented shareholdings in the company,” the Czech daily Hospod (HN) concluded. Despite PPF’s claim that Chvatál represented the interests of a private shareholder not connected to PPF, it is logical to conclude that upon his appointment an entity controlled by the PPF Group — or Petr Kellner personally — had already acquired a significant stake in Rav Agro-Pro.

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Russia: Kellner's promised land – and soil
Russia: Kellner's promised land – and soil

The firm's assets also include a pig farm with 3700 heads and large dairy and cattle farm. “The goal is to create vertically integrated agricultural business; however, livestock is to be a main focus,” PPF Group spokesman, Alexei Bechtin,



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