Continental Farmers to list on junior market

Continental Farmers Group, the Isle of Man-based diversified agricultural producer, is to list on the secondary market of the Irish Stock Exchange in late June.

The group, which is 39 per cent owned by Origin Enterprises, the Dublin-listed agri-nutrition and food company, has farming operations in western Ukraine and northern Poland. Its core business is crop production comprising oil seed rape, sugar beet, potatoes, wheat and maize.

As well as listing on the Enterprise Securities Market, Continental Farmers Group has also made an application to list on London’s Alternative Investment Market.

Following the listing, it is expected that Origin, which sees the group as a non-core business, will reduce its stake over time.

The Irish group first acquired a 20 per cent share of Continental Farmers for € 12 million in 2008, on the grounds that it would provide geographic extension opportunities for Masstock, its agronomy and farming systems advisory business. It later increased this to 36.9 per cent in 2009 for an additional €7 million, and to 38.7 per cent for a further €500,000 in 2010.

NCB Stockbrokers estimates that Continental Farmers currently contributes in the region of €500,000 to €1 million to Origin’s associate line, depending on annual yield and crop price variations. Other shareholders in Continental Farmers include company chief executive Mark Laird, who holds a 13.7 per cent stake, and Davy private clients, who hold a 8.9 per cent share.

Origin closed flat at € 3.85 in Dublin yesterday.