French food ingredients group Eridania Beghin-Say is to demerge in July 2001. The news arrived at the same time as mixed financial results for 2000. The group reported a drop in net income from Euro 138.9 million in 1999 to Euro 57.3 million in 2000, for the large part due to an increase in allowances for goodwill amortisation, Euro 156.5 million compared to Euro 29.6 million in 1999. Sugar and Derivatives sales were down 1.8 per cent, Starch and Derivatives increased 7.2 per cent and Food Oils were up 2 per cent. From July 2001 Eridania Beghin-Say will be divided into four independent companies. The divisions will reflect the core areas of the group - Food Oils, Animal Nutrition, Sugar and Derivatives and Starch and Derivatives. The estimated value of the Eridania Beghin-Say share, based on the valuation of each one of the new firms and according to the prevailing stock market criteria applicable to comparable companies, is approximately Euro 120.
