December 7, 2012

Pescanova is considering the possibility of selling its assets in Chile, that is, the salmon firm Acuinova and Nova Austral, and the fishing company Pesca Chile.

The business of the multi-national company in Chile would total between US$300 million and US$400 million, an amount of which approximately US$150,000 million would correspond to Nova Austral, in the XII Region, Diario Financiero reported.

According to the Chilean newspaper, it was said that executives from Pescanova would be talking to at least two interested parties in acquiring its firms. Reliable fishing industry sources indicated that one of them is the Norwegian salmon firm Marine Harvest, whose main interest would be Pesca Chile.

In order to analyse the alternatives, the Spanish company would be working with two financial advisers (one of them based in Chile), said the negotiation connoisseurs. Last June, Pescanova announced the firm would put 49% ownership of Acuinova Chile in the capital market through a capital increase of US$57.8 million.

At that time, the Galician company told the National Stock Exchange of Spain that the main objective of this initiative was to "finance the growth of the salmon business area while maintaining and strengthening its asset soundness."

Furthermore, the multinational firm told Superintendencia de Valores y Seguros (SVS) of Chile that the initial public offering (IPO) would intend to strengthen its financial position and reduce the level of financial liabilities "arising from the current loan agreements or those that are currently being negotiated."

According to the newspapers, if negotiations for the sale are not successful, the initial public offering in the stock will take place during the first quarter of 2013, through the issue of 519.9 million shares, without par value and having unique series.