Fyffes signals intent to demerger units

Fyffes has today signalled its intention to cancel its listing on the official markets in Ireland and the United Kingdom and …

Fyffes has today signalled its intention to cancel its listing on the official markets in Ireland and the United Kingdom and gain admission to trading on the IEX and AIM markets.

In a statement to the Irish Stock Exchange this afternoon, the fruit-distribution company said it has contacted shareholders in connection with the proposed demerger of its produce and distribution businesses to a newly formed company, Total Produce.

In its statement Fyffes said: "The board believes that the current market valuation of Fyffes does not adequately reflect the value of the company's component parts.

"Consequently, it is the board's belief that the separation of its two operating divisions will facilitate the creation of incremental shareholder value through greater transparency of each division's financial performance.

READ MORE

"The demerger, together with the commute will create two separate listed companies quoted on IEX and AIM allowing shareholders to attribute value more specifically."