One of the two families that jointly owns a controlling stake of Chilean salmon farming company Blumar want to divest from its seafood assets to focus on other businesses. This has prompted an exit clause, and a competitive sale of a 78.81 percent stake in the company.
In a statement to the Chilean securities regulator SVS, the company announced the development. The Las Urbinas Group – controlled by the Santa Cruz and Yaconi families – has decided not to extend a shareholder agreement it has with Inversions Petrohué, controlled by the Sarquis family. Together the two investment groups have held the 78.81 percent stake since 2011. The agreement is set to end on 19 October, 2019.
The statement to SVS said that the Las Urbinas group has decided to reorganize its assets, divest from the aquaculture and seafood sector, and refocus those investments into other areas of business.
The agreement contemplated an exit clause, which obliges the controllers to sell all of their shares of the company in a competitive sale. The process will be led by an investment bank, which will be designated within a period of 30 working days.
Under the agreement terms, this sale must take place between 6 to 12 months, and the Sarquis family is qualified to participate as a buyer for these shares.
The announcement comes as the company has posted significant gains in 2018 in its salmon business. According to its most recent earnings statement, in 2018, Blumar posted a revenue of USD 503 million (EUR 450 million), with 62 percent coming from its salmon business, mainly Atlantic salmon. The company has also looked to grow its coho salmon business, and in February of this year, announced an acquisition of Coho producer Salmones Ice Val in a deal worth USD 51 million (EUR 45.6 million).
In 2018, Blumar saw a 68 percent year-over-year increase in its volume of salmon sold and a 59 percent increase in the value of its sales. In all, its revenues jumped 53 percent in 2018.
