January 5/Reykjavik, Iceland/M&A Navigator -- Canadian frozen seafood specialist High Liner Foods Inc. said it has filed an unsolicited proposal for the takeover of Reykjavik-based seafood supplier Icelandic Group for a total of 340 million euros ($453 million).

The purchase price includes 170 million for taking over Icelandic Group's liabilities and 170 million for its equity.

According to High Liner Foods' CEO Henry Demone, Icelandic Group is a major supplier of seafood in Europe and the United States. The takeover will enable the Canadian company to become a "leader in the sale of valued-added seafood to the U.S. foodservice market," the manager said in a press release.

However, High Liner pointed out that the owners of Icelandic Group are currently in talks with a European private equity company and thus do not plan to start negotiations with any other suitors until at least January 8.

A possible acquisition, which would boost High Liner's earnings before one-offs, will be funded via an existing working capital facility, new debt and equity. High Liner is being consulted by KE-Partners in the transaction.

From the January 10, 2011, Prepared Foods E-dition