The largest agricultural holding of Ukraine is going to leave the Warsaw Stock Exchange

Andrii Verevsky’s company Namsen Limited, which is the largest shareholder of the agricultural holding Kernel Holding S.A., may leave the Warsaw Stock Exchange.

In particular, Namsen Limited proposed to the board of directors of “Kernel” to consider the issue of delisting from the Warsaw Stock Exchange and buying back shares from other shareholders.

“For a number of reasons, we have come to the conclusion that the strategic, commercial and financial disadvantages resulting from the company’s listing on the Warsaw Stock Exchange outweigh the relative advantages of the company’s publicity,” reads the shareholder’s letter published on March 6.

Namsen, which owns 41.29% of Kernel’s voting shares, believes that going public in 2007 did not bring the expected benefits to the agricultural holding.

Over the past 11 years, the company has never been able to attract financial capital to invest in development, and Polish investors are no longer among Kernel’s main shareholders.

“Given the above and with no signs of improvement in the near future, we conclude that there is no longer any benefit for the company to remain public,” the letter said.

Continuing to stay on the Warsaw Stock Exchange will require significant direct and indirect costs from the company, and the private form of ownership will allow it to reduce its vulnerability to potential adverse conditions on the stock market, the shareholder believes.