Black Earth Farming, the Russian agribusiness conglomerate, has announced plans to sell its Russian operations and liquidate the company. Black Earth says it has reached agreement to sell its farming assets for $184m (€173m) to Volgo-DonSelkhozInvest, another Russian agribusiness that farms almost 250,000ha of land in the Volgograd area of western Russia.

Black Earth plans to use the sale of these assets to repurchase outstanding debt bonds and wind up the company in the coming months. When this process is complete, Black Earth says it will have between $185m and $193m (€174m to €182m) to redistribute to shareholders in the company, which is listed on the Stockholm stock exchange.

Black Earth says this return to shareholders will represent a premium of between 96% and 105% on the company’s share price last August. Since August 2016, shares in Black Earth Farming have increased over 90% in value amid speculation the group was in talks to purchase a major landholding in central Russia. However, this deal has not happened and Black Earth management says selling the business to Volgo-DonSelkhozInvest represents the best return for shareholders.

What is Black Earth Farming?

Established in 2005, Black Earth Farming controls close to 245,000ha (605,400ac) of agricultural land in Russia, which is an area slightly bigger than Co Meath. About 150,000ha of this is planted annually in crops such as wheat, maize, barley, sunflower oilseeds and potatoes.