May 9 - As announced on 4 March 2008, Danisco A/S anticipates an improved balance between supply and demand in the EU sugar market.
In light of this improved outlook, Danisco A/S formally initiated preparations for the spin-off of Danisco Sugar A/S to its existing shareholders.
In parallel, Danisco also commenced a sale process for Danisco Sugar, in which a number of interested parties have been invited to participate.
Both the spin-off and sale processes are progressing according to plan, and we will provide an update on 23 June 2008 in conjunction with our full-year results.
Danisco A/S is required to perform impairment tests of the value of its assets. In light of the planned spin-off or the potential sale of Danisco Sugar A/S, and in conjunction with its advisers, Danisco A/S now expects to book a goodwill impairment charge in regard to its Sugar division of between DKK 0.5-1.0 billion.
Following this impairment charge the Invested Capital of the Sugar division at the end of April 2008 was between DKK 6.2-6.7 billion.
This book impairment charge will be recorded under special items in the financial statements in the fourth quarter for the financial year ending 30 April 2008.
Danisco therefore expects profit for the year before share-based payments of between DKK 0.6 and 1.1 billion for the financial year ended 30 April 2008.
The results for 2007/08 will be announced on 23 June 2008.