The new merged firm's assets will be about USD 1,000 million. (Photo: Itata/FIS)

Merged companies forecast turnover of USD 400 million

CHILE
Tuesday, August 09, 2011, 22:50 (GMT + 9)

Following the signing of a definitive agreement to finalize the business merger between Pesquera Itata SA and Pesquera El Golfo, it is estimated that the new company could turn over about USD 400 million, with a potential production of 60,000 tonnes.

The merger should materialize in late September 2011.

Itata will have the 54.69 per cent interest on capital and El Golfo will have the remaining 45.31 per cent.

The total assets of the merged company, whose name has not been decided yet, would be about USD 1,000 million.

This union between Sarquis family -- who owns Itata -- Yaconi and Santa Cruz families, owners of El Golfo, will not only facilitate the consolidation of the salmon business but will also generate a generational change, according to Estrategia.

This business union will allow them to:

• Optimize the fishing fleet;
• Streamline the fishmeal plant operation;
• Increase the use of horse mackerel for the production of direct human consumption;
• Increase purchases of aquaculture inputs;
• Perform a vertical integration in salmon processing.

According to sources close to the fishing firms, negotiations began in 2010 and a definitive agreement was reached in January thanks to the business complementation.

Each company was advised by a different investment bank: Itata chose LarrainVial and El Golfo selected IM Trust.

The new company will operate 15 neighbourhoods and will have 38 concessions: 17 from El Golfo and 21 from Itata. It will also possess a fleet of seven operating purse vessels and another one of trawlers, with two more vessels.

The new firm will take 9 per cent stake in the Atlantic salmon and trout harvests.

Itata general manager, Gerardo Balbontín, anticipated that in the medium and long term, the union will have impacts on the results of the company and its shares, which currently cannot be quantified.

Related article:

- Itata and El Golfo agree to merge

By Analia Murias
[email protected]
www.seafood.media

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