Spanish food company Ebro Puleva is studying a possible bid for SOS Corporación Alimentaria’s rice division but has not begun talks with its local peer, a company official has confirmed.
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In a regulatory filing earlier this week, the firm said it has not begun any formal conversations with Sos or signed any confidentiality agreements.
According to analysts, a string of firms including Agrolimen, Mars Group and PepsiCo are reportedly interested in bidding for Sos’s rice division, one of Spain’s best-selling rice brands. The unit has been put on sale to reduce Sos’s high debt levels via investment bank Credit Suisse.
In a regulatory statement yesterday, Sos said it hopes to cut its debt to between EUR600m (US$900m) and EUR650m from 2009 to 2013. Currently the group’s debts stand at some EUR1bn.
This initiative will be funded mainly via non-core divestments, the company said, including the Proyeto Tierra olive-harvesting field and other real-estate assets.
During the period, the company also hopes to increase EBITDA by 6.8% and raise EUR200m through share offerings.
