By D. Alexaki
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Greece-based Andromeda group purchased two rival aquaculture companies this month, buying up Nireus and Selonda by acquiring 74.98 and 79.61 percent of their share capital, respectively. The development is also noteworthy given that it is accompanied by a major loan restructuring plan.
According to details of the deal, which was revealed on Wednesday, Mubadala Investment Co. – which is essentially Abu Dhabi’s sovereign wealth fund – and Amerra Capital Management LLC (Andromeda’s primary shareholder) will be the key players in the investment scheme that will emerge from the merger of the three large fish farm producers.
Nireus’ announcement refers to a total transaction price of 10 million euros, along with a commitment by the purchaser to invest more capital in the company and reduce the level of its outstanding bank debt burdening the company, initially, by a 20 million euros lump sum. Nireus’ owns bank obligations today reach a eyebrow-raising 176 million euros.
On its part, Selonda’s shares were transferred for a symbolic one euro, with investors promising to reduce its debt load (today at 171 million euros) and to funnel capital into its operations.
Andromeda was purchased by Amerra in 2016.
