Iceland-based fresh prepared foods and produce specialist Bakkavör has ended its 10.9 per cent economic interest in Greencore Group PLC, citing difficult global economic conditions as the reason for the pullout.
The group relinquished its interest under a Contract for Difference (CFD) in 22,028,795 ordinary shares in Ireland-based Greencore, at a price of €1.30 per ordinary share.
'As a direct result of the turmoil and fluctuations in theglobal financial markets, it is with regret that the funding source forthe CFD was withdrawn, making it neccessary for the group to relinquishits economic interest in Greencore,' said Bakkavör CEO ágústGudmundsson. 'The funding of CFD was outside the group's normal bankingarrangements and its withdrawal is in no way a reflection of thefinancial standing of the group.'
A fall in Greencore's share price during the first half of 2008 was one of the key factors in Bakkavör's disappointing 36 per cent fall in profit during the period.
'Bakkavör is a cash generative business with strong fundamentals and remains totally committed to the fresh prepared foods sector in the UK and internationally,' Mr Gudmundsson added. 'Our business philosophy remains unchanged.'
