December 22, 2003 – Santiago, Chile.
Quiñenco S.A. (LQ:NYSE) announced today that its 93.7% -owned subsidiary, Empresas Lucchetti S.A., had signed a Memorandum of Understanding (MOU) with Corpora Tresmontes S.A. to sell 100% of its outstanding shares in Lucchetti Chile S.A. The transaction includes the sale of Lucchetti Chile’s ongoing businesses as well as other tangible and intangible assets involved in Lucchetti Chile’s ongoing businesses. The MOU excludes Empresas Lucchetti’s assets and liabilities outside of Chile (including any rights associated with the closure of Lucchetti Peru which is pending arbitration under CIADI), its candy business and the plant facilitites located in Nos and Talca.
The transaction is subject to adequate due diligence which will conclude within a 90 day period as well as Corpora Tresmonte’s ability to obtain financing. In addition, the transaction is subject to approval by shareholders at an extraordinary meeting as it involves the sale of 85% of the company’s consolidated assets.
The sales price will be determined using a formula that considers a total estimated value of the assets to be transferred of Ch$60 billion, of which financial liabilities will be deducted at closing. If the transaction is completed, Empresas Lucchetti estimates that it would recognize a gain on sale of approximately Ch$6,425 million.
Proceeds related to the transaction would be used to develop Empresas Lucchetti’s candy business and ready-to-eat food, including snack food.
Quiñenco S.A., a leading Chilean business conglomerate, is the controlling entity of a portfolio of companies involved in financial services, food and beverage, telecommunications, manufacturing and real estate and hotel administration.