Trigon Agri A/S announces that it has completed the divestment of its Rostov cluster.

Trigon Agri A/S announces that it has completed the divestment of its Rostov
cluster. As reported in the past the Company took the decision to divest this
non-core asset as a means of reducing the Company’s overall financial leverage
and for the reason that it considers climatically the region to be of high risk,
being prone to drought and as a consequence carries volatile and unpredictable
crop yields.

The sale of the Rostov cluster has generated proceeds in total of EUR 13.3
million, this comprising of the land, buildings, machinery, and work in progress
costs until April 1st 2016. The preliminary estimated effect from the
transaction on the 2016 income statement is a one-off loss of EUR 3.3 million,
which was accounted for in the Q1 2016 report.

The cluster carried borrowings from Rietumu Bank of EUR 7.9 million and this
plus the outstanding interest for May 2016, has been repaid in full. Going
forward the company will no longer carry an annual interest cost of EUR 0.8
million which was associated with the Rietumu bank loan. After transactional
fees and deductions in relation to financial leases, a balance of EUR 5.0
million will be transferred to the Deposit Account pledged to the bondholders.
Subsequently the funds shall be distributed to the bondholders, unless the
distribution obligation will be partially or entirely waived by the bondholders
committee.

“Although the price achieved was not in line with earlier predictions, one must
be realistic and recognise that not only has there been a devaluation of the
Rouble, but that the very low world wheat price today, is being reflected in the
regions’ land price, where there is now a surplus of land on the market. But
after protracted negotiations, we are pleased to have realised what can be
considered a realistic and acceptable price given the present days land market
in the Rostov region”, says Johannes Bertorp, Chairman of the Board of
Directors.

“Going forward the company’s intention is to concentrate on both the development
of the Ukrainian Agribusiness and the St Petersburg dairy business. These
businesses are showing good returns and have stable and effective management
teams in place. The focus will be to aim to achieve that all commodities are
produced at the lowest possible cost per tonne, this through a combination of
yield and robust cost control “, states Simon Boughton CEO.