HKScan and a Danish giant

HKScan announced in December the sale of their egg business in Estonia and also becoming a minority shareholder in their Finnish hatcheries.  Of course those were separate deals de jure but it was unpleasant to see that HKScan left without telling the simple fact that both contracting partners are part of the same group.  Such secrecy gives an impression of dishonesty.

DAVA Foods Holding A/S ja Danish DanHatch AS both belong to Danish Agro corporation, with holdings in Finland already before this, among others 50% share of Muna Foods, formerly known as Munakunta, and  60% share of Hankkija Oy and the rest of Hankkija will likely be sold to Danes in no time.

HKScan Estonia’s egg business sale should have been guessed already a year ago, when the Group announced that Tallegg’s egg production will be separated from poultry meat production.  Teet Soorm, head of HKScan Estonia, almost revealed it by first saying strongly that Tallegg’s focus is on poultry and then adding that egg production is still important business for the company.  I would imagine that the negotiations were already advanced at that time.

Hannu Kottonen, CEO HKScan comments the two December sales:  “These deals are further steps in our efforts to rationalize our operations, focus on our core business, improve our productivity and further simplify and clarify the Group structure. The changes allow us to further strengthen our position as the leading Nordic meat company.”

Yes, yes, Kottonen talks about core business. Core today, niche tomorrow, HKScan is shrinking fast.   But what might be Danish Agro’s core business?  Apparently they focus on … that’s right, they focus on agriculture.  They are not shrinking, but in Finland, is it this, what is left of truly Finnish agriculture?

We will discuss HKScan later but on Friday, January 16^th, we are going to look at Atria’s businesses. Harvest Samba!

This is Artoparto and here is my Disclaimer.  Please read it.

Disclaimer:  All content provided on this site is for entertainment purposes only.  This site does not provide any investment advice and content on this site should not be construed as recommendation to buy or sell any financial instruments.  Please consult a qualified financial adviser before making any financial decision.  I make no representations as to the accuracy, completeness, suitability, or validity, of any information on this site or found by following any link on this site.  I will not be liable for any errors, omissions, or any losses, injuries, or damages arising from displaying or using any content provided on this site.  I am not responsible for users' comments.  I reserve the right to update or delete any content on this site for any reason.