Union Agriculture Group (UAG) announced that it will issue new shares worth 75 M USD on the Montevideo Stock Exchange. The company had its public offering in May 2013 on its domestic market. The objective of this new round is to gather more capital and use the Stock Exchange for this purpose. Shares will be available for all types of investors.
Earlier it became public that the company is in a restructuring, including changes in management positions and refinancing of its debts. Another objective was to renegotiate lease agreements as a consequence of the lower prices for commodities.
Operational losses of the company in administrative year 2012/2013 were over 5 M USD and in the period 2013/2014 nearly 7 M USD. The first 6 months of the current period already show losses of 11,5 M USD.
The total debts of the company accumulate 113 M USD, according to an article in El Pais.
In 2014 UAG had taken over Argentine group El Tejar with a total investment of nearly 200 M USD. UAG currently holds approximately 171.000 hectares of farmland in Uruguay, which is about 1% of the entire surface of the country.