Premia Scores Sweet Deal ({{commentsTotal}})

Food producer Premia has agreed to sell its ice cream and frozen foods arms for 27 million euros to Food Union, a Ukraine business.

The two departments make up half of the company's annual turnover, and will leave Premia with only its fish production wing.

The leadership of the company said today the deal is good for shareholders as the total share value of the company on the Tallinn stock exchange is only 24 million euros.

The “Premia” trademark is also part of the deal, as are other trademarks used in the Baltics by the company.

The Tallinn production facility will remain.

The deal has to be approved by shareholders at a general meeting at the end of the month, and the sale should be finalized in a few months, if approved.

Andrey Beskhmelnitsky, the man behind the takeover, said that their aim is to expand business in the Baltics and create the region's largest ice cream producer.

The company's share price jumped nearly 14 percent Monday to 0.73 euros.

In February Premia said its turnover increased by 14 percent in 2013, compared to the previous year, reaching nearly 100 million euros. The company also reported an 800,000 euro profit, eight times more than in 2012, and the figure could have been much higher had it not been for unfavorable currency exchange shifts and a decision by Swedish veterinary authorities.