Disposal of Marine Proteins and Oils JV interest

RNS Number : 5614I

Origin Enterprises Plc

04 July 2013

 



4 July 2013 

Disposal of Marine Proteins and Oils JV interest

Origin Enterprises plc, the Agri-Services Group, ('Origin' or 'The Group'), announces that it has reached conditional agreement to dispose of its 50% interest in its Marine Proteins and Oils joint venture, Welcon Invest AS ('Welcon'), to its joint venture partner Austevoll Seafoods ASA ('Austevoll') for a cash consideration of 740m NOK equivalent to approximately €93m at current exchange rates ('The Transaction'). 

The Transaction is subject to a number of conditions including clearance from Competition Authorities and is expected to complete during the first half of our 2014 financial year.

Origin and Austevoll formed the Welcon joint venture in February 2009 following the merger of their respective Irish, UK and Norwegian fishmeal and fish oil operations, creating a European player in the manufacture and distribution of marine based feed ingredients.

The Group's share of profit after interest and tax from Welcon averaged €8.4m for the three years to 31 July 2012.  Share of net assets at 31 January 2013 amounted to approximately €68m.

The proceeds from the disposal will be used ultimately for investment in our core Agri-Services business.

Commenting on the Transaction, Origin Chief Executive Officer, Tom O'Mahony said:

"The Transaction represents an important streamlining of Origin's business profile in line with our commitment to prioritise the allocation of capital for the expansion and development of the Group's Agri-Services business.

This is also a good outcome for Welcon.  Austevoll's position and proven track record as a leading integrated pelagic fishery specialist will bring further benefits to Welcon under their full ownership."

As previously indicated Origin will issue its Preliminary Results Announcement for the year ended 31 July 2013 on 25 September 2013.

ENDS

Enquiries:

Origin Enterprises plc

Brendan Fitzgerald, Chief Financial Officer                                  Tel:       [phone]

Goodbody Corporate Finance (ESM Adviser)

Kevin Keating                                                                           Tel:       [phone]

Davy (Nominated Adviser)

Ivan Murphy                                                                              Tel:       [phone]

Murray Consultants

Joe Murray                                                                               Tel:       [phone]

                                                                                                Mobile: [phone]

About Origin Enterprises plc

Origin Enterprises plc is a focused Agri-Services group with investments in marine proteins and consumer foods.  The Group is listed on the ESM and AIM markets of the Irish and London Stock Exchanges.  The Agri-Services business through its manufacturing and distribution operations in Ireland, the United Kingdom and Poland has leading market positions in the supply of specialist agronomy services, crop nutrition and feed ingredients.

ESM symbol:    OIZ

AIM symbol:     OGN

Website:           www.originenterprises.com

 

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