Asmak looks to sell 2 units, other assets

Abu Dhabi-listed International Fish Farming Holding Co. (Asmak) is negotiating sale of its two subsidiaries and is looking for buyers to offload some of its other assets.

The company said in its 9-month statement sent to Abu Dhabi Securities Exchange that the management has decided to suspend and to sell the assets related to the operations of Asmak Seafood Processing Co. and Asmak Quriyat International.

“The group is currently in negotiation with some potential buyers and expects to complete the sale within 12 months. It has not recognised any impairment losses in respect to the two subsidiaries’ business,” the financial statement said.

The group owns 100 per cent stake in Asmak Seafood Processing Co. and 90 per cent in Oman-based Asmak Quriyat International.

The 9-month financial statement revealed that Asmak is also searching for a buyer to sell property, plant and equipment assets within the next 12 months which are no longer utilised.

Results qualify

According to the company’s statement, Asmak sold stake 50 per cent stake in Meena Holding for Dh167 million to a third party on April 1, 2014, and retained 20 per cent which was valued at Dh46.49m at the date of disposal.

It claimed that the “signed agreement contained some precedent conditions, without being fulfilled, the agreement would be considered void. The group was able to fulfill all of the conditions by July 1st, 2014.”

The company claimed that a non-controlling party is claiming Dh40.72 million as compensation for their management of the subsidiary. The two parties, however, are negotiations the compensation and the amount has not been finalised.

Based on this reason, the 9-month financial statement of Asmak has been qualified by its auditor Deloitte & Touche ME, claiming that it was “not provided with the agreement signed by all parties specifying the amount of such compensation… we were unable to satisfy ourselves as to the adequacy/accuracy of the amount provided by the group.”

Deloitte said financial statement of first 9 months of 2013 and for the period ended on December 31, 2013, were reviewed by other auditors

The company swung back into black in the third quarter of 2014, posting Dh16.2m profit compared to Dh1.88m loss in the same quarter last year. In the 9-month period ended on September 30, 2014, Asmak announced Dh36.6m profit compared to Dh14.3m loss in the same period last year.

Its 9-month 2014 revenues rose to Dh234.4m compared to Dh194.7m in the same month last year. Q3 revenues rose by Dh9m to Dh70.3m

Its shares last closed Dh5.31 on the Abu Dhabi bourse.

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