Salmon farming centre belonging to Cultivos Marinos Chiloé. (Photo: Cultivos Marinos Chiloe)
Mainstream considers purchasing Cultivos Marinos Chiloé
Tuesday, July 17, 2012, 00:50 (GMT + 9)
Mainstream Chile, a company linked to the Norwegian group Cermaq ASA, admitted being negotiating the purchase of the company Cultivos Marinos Chiloé, the newspaper Estrategia reported.
In a brief public statement posted on its website, Cermaq confirmed the rumours about the negotiations, but said there are still "substantial uncertainties" as to the operation closure.
The company said that at present there will not be further comments on the subject. "A further announcement will be made as and when appropriate," it was added.
The purchase of Cultivos Marinos Chiloé would be completed after the suspension of the first opening in the Santiago Stock Exchange by late June.
For the third time, the managers of Cultivos Marinos Chiloé decided to postpone the opening of the company in the Stock due to the recorded low salmon prices and the resulting complicated situation of the industry.
While the firm has a high debt level -- associated with the crisis caused by the spread of the infectious salmon anemia (ISA) virus detected in 2007 -- its top executives have ensured it will not be necessary to inject capital for the firm to continue operating and meet its covenants.
The company was planning to produce 40,000 tonnes in 2012 and sell for USD 250 million.
In addition, it is expected to produce about 80,000 tonnes in 2017 and to bill about USD 400 million.
Cermaq Group is a global leader in fish farming and feed, operating in the main aquaculture regions of the world. Its division Mainstream is one of the main salmon and trout farming companies, with a turnover in 2011 that reached about NOK 11,600 million (USD 1,890 million).
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By Analia Murias