Pacific Andes unit to sell stake in salmon producer for $112.8m

SINGAPORE - A unit of Pacific Andes Resources has agreed to sell a 18.09 per cent stake in salmon producer Tassal Group for A$96.7 million (S$112.8 million), the Singapore-listed group said on Friday.

Quality Food, an indirect subsidiary of Pacific Andes Resources, will retain a 4.6 per cent stake in Tassal upon completion of the transaction.

It will book a A$36.9 million gain from the sale, an approximately 100 per cent gain on its investment, the group said.

The proceeds from the sale will be used to reduce Pacific Andes Resources' gearing and finance costs, which is in line with the group's "current priority of consolidation and cash flow generation to lower finance costs and achieve improved gearing".

"The directors continue to view Tassal as a good investment and believes it is in the best interests of shareholders at this time to hold the balance of the Tassal shares as an investment", the group said in a statement.