Clearwater Seafoods Income Fund, the Canadian seafood group, has seen a proposed deal to take the company private hit by the banking crisis in Iceland.
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Clearwater had agreed in August to be taken private by a consortium led by Clearwater Fine Foods Inc (CFFI) in a deal said to be worth around C$40m (US$31.2m). Members of the consortium had owned a 68% stake in Clearwater.
Under the terms of the transaction, Glitnir was set to provide 10% of the finance for the deal but yesterday (28 October) Clearwater said the deal had fallen through after the Icelandic bank was nationalised amid the country’s financial crisis.
“Despite the parties’ diligent efforts to address the financing issues, the parties have been unsuccessful in arranging alternative sources of financing, which was needed for the completion of the transaction,” Clearwater said in a statement.
Tom Traves, chairman of the trustees, speaking on behalf of the fund, added: “The trustees are disappointed that this disruption of the financial markets did not allow the fund and the consortium partners to complete the transaction.
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By GlobalData“However, we remain confident in the business and its prospects for the long term. The trustees will continue to work with CFFI to review alternatives to maximize value for the unit holders.”
