Barclays could be about to take a 70.0 per cent stake in troubled French poultry exporter Doux, which went into administration in early June, a source close to the firm’s management told Reuters.
Officials at the Châteaulin-based business said the bank holds EUR 140.00 million of debt from the company.
Reuters went on to say that a spokesperson for Doux confirmed that a plan presented to a French court today includes a debt-for-equity swap with Barclays.
Reports that the company was being put up for sale first emerged last summer, when Sunday newspaper Le Journal du Dimanche said the firm’s family shareholders are selling their 80.0 per cent stake.
Although the paper observed that the business is profitable, with a turnover of EUR 1.40 billion, it is also laden with EUR 400.00 million of debt, and revenue has fallen by 23.5 per cent.
In February, Le Figaro said Les Fonds Strategique d’Investissement (FSI) was interested in picking up a minority stake in Doux, but later pulled out.
According to Les Echos, FSI expressed disappointment that it only learnt from reading press reports that the firm’s owner Charles Doux had signed a memorandum of understanding with Brazilian meat giant JBS for a possible deal.
Earlier this month, industry news provider Food Business Review said that after going into administration the group received 11 takeover offers from bidders, among them a Sofiprotéol-led consortium composed of poultry producers including LDC and Tilly Sabco.
One of Reuters’ sources said that the EUR 28.00 million recovery plan being submitted today also involves the Saudi company Al-Munajem, one of the major importers of Doux chicken, taking a 10.0 per cent stake in the business.
If successful, the deal will save 3,190 jobs.
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