Wessanen Postpones US Disposal
Wessanen has decided to postpone the divestment of its US subsidiary American Beverage Corporation (ABC). Wessanen started the divestment process of its US subsidiary in June in line with its strategy to focus on organic food in Europe. Following a comprehensive process, which showed a good level of interest from strategic and financial parties alike, Wessanen has concluded that the bids received to date do not adequately reflect ABC’s fundamental value.
ABC has delivered very strong and profitable growth over 2010-2012. It also remains the clear market leader in an attractive and sustainable market. However, despite ABC’s continued success, the uncertainties attached to its relatively short track record in the emerging ready-to-drink frozen pouch category appears to have held back interested parties’ views on value.
In light of this and ABC’s outlook for 2013, Wessanen is of the view that a postponement is the right course of action in order to realise better value for shareholders at a later stage.
As a consequence, ABC will be again reported as ‘continuing operations’, reversing its reporting as ‘discontinued operations’. Wessanen expects to recognise an additional deferred tax asset in the fourth quarter as a result of the available tax losses carried forward.
