Incarlopsa draws interest from potential suitors amid reported talks with Kam Fung
17 APR 2018
Incarlopsa, a Spain-based meat producer, has drawn the interest from foreign suitors while Kam Fung, a Hong Kong-headquartered Chinese investment firm, is having discussions, according to a newswire report on 16 April.
Reuters cited Incarlopsa Chairman Emilio Loriente in confirming that foreign investors are interested in the company although no sale is being actively sought.
Citing a company statement, the item noted that Incarlopsa is listening to potential suitor's interest from such countries as China, the US and Russia. However, no sale process is underway, it added.
The report cited sources knowledgeable of the matter as saying that Kam Fung is having discussions over a potential takeover of a 95% stake in Incarlopsa, and the current owner, the Loriente Piqueras family, will retain the remaining stake.
The transaction could value Incarlopsa at EUR 1bn, it said. The Spanish company has debt of almost EUR 200m, according to the report. The proposed price of the deal is giving an enterprise value of 16x EBITDA to Incarlopsa, higher than the about 10x average for the industry in Europe, as reported.
Kam Fung has been reaching out to bankers for funding but certain lenders are concerned that the Spanish firm is too reliant on Mercadona, a supermarket chain in Spain, for income, the report said.
Kam Fung is holding talks over forming a consortium with China Huarong Asset Management although the Chinese firm could refrain from entering the fray amid the Chinese government's tightening scrutiny on outbound deals, as reported.
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