4 July 2013
Disposal of Marine Proteins and Oils JV interest
Origin Enterprises plc, the Agri-Services Group, ('Origin' or 'The Group'), announces that it has reached conditional agreement to dispose of its 50% interest in its Marine Proteins and Oils joint venture, Welcon Invest AS ('Welcon'), to its joint venture partner Austevoll Seafoods ASA ('Austevoll') for a cash consideration of 740m NOK equivalent to approximately €93m at current exchange rates ('The Transaction').
The Transaction is subject to a number of conditions including clearance from Competition Authorities and is expected to complete during the first half of our 2014 financial year.
Origin and Austevoll formed the Welcon joint venture in February 2009 following the merger of their respective Irish, UK and Norwegian fishmeal and fish oil operations, creating a European player in the manufacture and distribution of marine based feed ingredients.
The Group's share of profit after interest and tax from Welcon averaged €8.4m for the three years to 31 July 2012. Share of net assets at 31 January 2013 amounted to approximately €68m.
The proceeds from the disposal will be used ultimately for investment in our core Agri-Services business.
Commenting on the Transaction, Origin Chief Executive Officer, Tom O'Mahony said:
"The Transaction represents an important streamlining of Origin's business profile in line with our commitment to prioritise the allocation of capital for the expansion and development of the Group's Agri-Services business.
This is also a good outcome for Welcon. Austevoll's position and proven track record as a leading integrated pelagic fishery specialist will bring further benefits to Welcon under their full ownership."
As previously indicated Origin will issue its Preliminary Results Announcement for the year ended 31 July 2013 on 25 September 2013.
ENDS
Enquiries:
Origin Enterprises plc
Brendan Fitzgerald, Chief Financial Officer Tel: +353 1 612 1259
Goodbody Corporate Finance (ESM Adviser)
Kevin Keating Tel: +353 1 667 0420
Davy (Nominated Adviser)
Ivan Murphy Tel: +353 1 679 6363
Murray Consultants
Joe Murray Tel: +353 1 498 0300
Mobile: +353 86 2534950
About Origin Enterprises plc
Origin Enterprises plc is a focused Agri-Services group with investments in marine proteins and consumer foods. The Group is listed on the ESM and AIM markets of the Irish and London Stock Exchanges. The Agri-Services business through its manufacturing and distribution operations in Ireland, the United Kingdom and Poland has leading market positions in the supply of specialist agronomy services, crop nutrition and feed ingredients.
ESM symbol: OIZ
AIM symbol: OGN
Website: www.originenterprises.com
