COCA-COLA Amatil has announced it has written down the value of SPC to zero, but SPC managing director, Reg Weine says this has no impact on the company’s market value and that positive times are on the horizon with the company set to be sold to an Australian buyer.
While there was interest to purchase the company coming from the USA and Europe, the shortlisting for round two of offers is said to look favourably toward an Australian buyer, which is expected to happen mid-2019.
The latest write-down, which takes SPC’s book value down by $146.9M, follows a $172M write-down in 2016, a $404M write-down in 2014, $146M in restructuring charges and asset write-downs in 2013 and a $80.5M charge in 2012.
Reg said, “Specifics of these offers are confidential, but we’re seeing some solid Australian and international interest.
“Parties in this process clearly recognise the value in SPC’s iconic brands, the strategic location of our manufacturing assets in the heart of the Goulburn Valley, and our proximity to fast growing export markets like China.
“It also reflects the significant transformation of SPC’s Shepparton manufacturing site and the state-of-the-art processing and packaging capability that is available to potential buyers of SPC.
“The overall level of interest is recognition of the inherent value of Australian agricultural assets and the iconic nature of SPC and its market leading brands.”
“While accounting standards necessitate this impairment, it does not reflect SPC’s market value or the offers received and doesn’t indicate any change to SPC’s publicly reported outcomes.
“We see a positive future for SPC as a market leader in processed fruit and vegetables. The sale process is about unlocking this future value.”
Mr Weine said there were no changes to SPC jobs, production or operations as a consequence of the impairment and it was business as usual at all SPC sites.
