Spanish food group SOS Corporacion Alimentaria will not sell its rice business for a price it considers too low as there is no deadline for a disposal, a source close to the company told just-food today (16 March).
“This is a market leading brand in Spain, Holland and some parts of the US,” the source said. “They have a very strong EBITDA that’s in line or better than the industry average and that’s set to rise sharply so they are not going to sell for a dilutive price.”
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SOS is selling the business, valued at EUR175-200m (US$241-275m), and other non-core assets to lower its debt by 50% by 2013. The company has also looked to raise cash by issuing new shares.
“They have the option to hold on to this asset until better times,” the source noted, adding that there is no deadline for the binding offers.
However, it is likely that the sale will be completed this year as Credit Suisse has already launched the sale process, observers have suggested.
During Monday’s bidding round, several private investors and buyout firms tabled offers including local private equity firm Ibersuizas.
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