Kernel, one of Ukraine’s largest agricultural companies, led by Ukrainian tycoon Andriy Verevskyi, and also one of the world’s largest sunflower oil producers, has delisted from the Warsaw Stock Exchange.
According to a report by the Financial Times, “Kernel’s board exceeded its powers in deciding to delist without first getting approval from shareholders.”
Andriy Verevskyi is now facing a legal challenge from the minority shareholders.
While the Polish regulator says that this is an unfortunate situation, it is also a case for investor education, who should have been paying closer attention to the fact that Kernel is registered outside of Poland, in Luxembourg.
Regarding its market share, Kernel has dominated the European market, which includes Poland. A mainstay in both residential and commercial kitchens, sunflower oil from Kernel and other respectable suppliers is valued for its high smoke point, mild flavor, and adaptability to a range of cooking uses, including baking, frying, and salad dressings.
The distribution and accessibility of sunflower oil, especially that made by Kernel, in Poland and other markets, may be impacted by modifications to trade laws, movements in customer preferences, and changes in the state of the economy.
Earlier in March, the Wall Street Journal reported that “much of Ukraine’s sunflower-seed oil exports remain curtailed by the war, but farmers are sending out the raw seeds instead.” Removing Kernel from the Warsaw Stock Exchange could have ramifications that go beyond the company.
It might affect opinions about the market’s stability and transparency, as well as how appealing the exchange is to prospective investors. Since this action establishes a precedent for comparable moves by other publicly listed firms, it may also have an impact on other companies inside the exchange.
As Reuters reported, “the Black Sea region accounts for 60% of world sunflower oil output and 76% of exports.” Kernel is a major player in the global market, and its commercial decisions can impact the global sunflower oil market.
