Orkla to sell Superfish ops to Poland's Graal for 10 mln zlotys UPDATE

(Updates with sale price)

OSLO (Thomson Financial) - Orkla ASA (other-otc: ORKLY.PK - news - people ) said it is to sell its frozen and tinned fish operations, known as Superfish, to Poland's Graal in a deal worth 10 mln zlotys.

'Under the agreement, Graal is to take over all the shares in Superfish,' Orkla said.

While Orkla declined to reveal the value of the deal, Polish fish tin maker Graal put a value of 10 mln zlotys on the agreement.

Superfish, which is part of Orkla's Branded Goods division and owned by Orkla's Abba unit, has been extensively reorganised since the Norwegian conglomerate took over in 2000, it said.

However Orkla said the reorganisation has been insufficient to convince it that the business has a long-term future.

'We are not satisfied with the financial growth and market position that we have achieved on the Polish market,' said Uwe Birkkjaer, managing director of Orkla Foods CEE.

'We therefore believe that a new owner who already has substantial operations in this category can help to enhance the company's future possibilities on the Polish market,' he added.

Superfish specialises in the manufacture of frozen, refrigerated and tinned fish products in Poland, under the Superfish, Abba and Barka brands.

It has two modern factories located in Kolobrzeg in northern Poland, and last year posted sales of approximately 250 mln nkr.

The deal has yet to be approved by Poland's competition authorities.

Source: forbes.com