Nueva Pescanova rejects allegations it faces cash crunch, threatening Cooke’s interest in acquisition

A spokesperson for Nueva Pescanova has denied his company is facing a cash crunch that is threatening Cooke’s interest in acquiring the Redondela, Pontevedra, Spain-based vertically integrated seafood firm.

On Thursday, 31 August, El Confidencial reported Cooke had broken off negotiations with Pescanova’s owner, Abanca, after a report from financial service firm EY discovered a large cash shortage and shortcomings in financial management at Pescanova, requiring “extraordinary capital contributions” if an acquisition were to take place.

Cooke entered into an exclusivity agreement with Abanca in April 2023 in negotiating a purchase of an 80 percent stake in Pescanova, but the deal-making went cold in July after the two sides could not come to an agreement on the price. In June, Cooke lowered its offer for Nueva Pescanova, originally in the range of EUR 150 million (USD 165 million) plus the assumption of EUR 500 million (USD 552 million) in liabilities in exchange for an 80 percent ownership stake, to EUR 50 million (USD 54.7 million) plus a capital injection of EUR 200 million (USD 218.8 million). It was rejected by Abanca and the offer was withdrawn, according to Faro de Vigo.

Nueva Pescanova Global Chief Marketing, Innovation, and Communication Officer Miguel Angel González Ezquerra told SeafoodSource at the time the two sides had agreed to resume negotiations in September 2023.

Nueva Pescanova has still not released its 2022 financial report, and González Ezquerra did not provide a timetable for its release. However, El Confidencial reported the company posted a net loss of EUR 53 million (USD 57.5 million) and an EBITDA of EUR 12 million (USD 13 million).

González Ezquerra said allegations Pescanova is facing a cash crunch are “absolutely false.”

"Nueva Pescanova has a strong cash position, and we don´t face any cash issues and we have financial autonomy to work on our business plan. We can discuss how mcuh money we need for the company or “x” business plan, but we [do not] have a cash problem," he said.

El Confidencial reported Abanca faces a deadline to settle its accounts in advance of a European Central bank review of its portfolio that is putting pressure on the bank to sell Pescanova so it doesn’t have to recognize significant losses on its income statement. As a result, Abanca Owner Juan Carlos Escotet is hoping to see Pescanova by the end of 2023, the newspaper reported.

Photo courtesy of Nueva Pescanova