In June, Wessanen announced that it had started the divestment process of its US subsidiary ABC. Following a comprehensive process, which showed a good level of interest from strategic and financial parties alike, Wessanen has concluded that the bids received to date do not adequately reflect ABC's fundamental value. As a result, Wessanen has decided to postpone the sale of ABC until a later stage.
ABC has delivered very strong and profitable growth over 2010-2012. It also remains the clear market leader in an attractive and sustainable market. However, despite ABC's continued success, the uncertainties attached to its relatively short track record in the emerging ready-to-drink frozen pouch category appears to have held back interested parties' views on value.
In light of this and ABC's outlook for 2013, Wessanen is of the view that a postponement is the right course of action in order to realise better value for our shareholders at a later stage.
As a consequence, ABC will be again reported as 'continuing operations', reversing its reporting as 'discontinued operations'. We expect to recognise an additional deferred tax asset in the fourth quarter as a result of the available tax losses carried forward.
