Pescanova's board has given its approval to a takeover bid for the Spanish seafood group from a consortium including local brewer Grupo Damm and three private-equity firms.

The offer, put together by Damm, plus buy-out houses Luxempart, KKR and Ergon Capital Partners, has been selected out of five bids for the ailing processor. The value of the bids were not disclosed.

Pescanova's directors said the bid was "the most suitable to lead the restructuring process and ensure Pescanova's future viability".

The company filed for insolvency earlier this year. According to Reuters, Pescanova's auditors said its management had tried to hide debts. KPMG had found Pescanova had debts of EUR3.6bn (US$4.95bn).

Damm and Luxempart are existing shareholders in Pescanova and collectively hold a stake of around 11%.

Pescanova's directors plan to hold talks with creditors to try to strike a deal over the company's debts.