Origin to dispose of stake in marine oils venture for €93m

Agri-services group Origin Enterprises is to sell its 50 per cent interest in the marine proteins and oils venture Welcon Invest US.

Origin has reached a conditional agreement to sell its stake to its partner in the venture, Austevoll Seafoods ASA, for some €93 million.

The deal requires clearance from competition authorities and is expected to complete during the first half of Origin’s 2014 financial year, the group said.

Origin chief executive Tom O’Mahony said the transaction marked “an important streamlining of Origin’s business profile in line with our commitment to prioritise the allocation of capital for the expansion and development of the group’s Agri-Services business.”

The Welcon venture was formed in early 2009 following a merger of Origin and Austevoll’s Irish, UK and Norwegian fishmeal and fish oil operations.

Origin said its share of profit after interest and tax from the venture was, on average, €8.3 million during the three years to July 2012.