ROTTERDAM, Netherlands--(EON: Enhanced Online News)--As part of the Nidera Board's plan to improve controls and risk management under the chairmanship and majority ownership of COFCO, the new executive leadership initiated a group-wide balance sheet review. The review recently unveiled an accounting issue in the Brazil balance sheet.
Because of the potential impact on bank covenants, Nidera has informed its lenders and COFCO has underwritten the financial support required to ensure compliance with the covenants. The cause of the accounting issue is currently under investigation. The review in relation to the rest of the company has not led to the need for any material adjustments and is largely complete. We will continue to work on strengthening the controls and governance within the company going forward as part of the COFCO Group.
Nidera is a major international agribusiness and trading company with annual turnover of USD 18.5 billion in 2015. Nidera was founded in Rotterdam, the Netherlands in 1920, with its early activities focusing on grain and foodstuffs merchandising in the regions from which it took its acronym: Netherlands, (East) Indies, Deutschland, England, Russia and Argentina.
Currently, Nidera has domestic and internal operations in 19 major export and import countries and distributes its products to more than 60 countries in the world.
By consolidating its presence throughout the value chain, Nidera has created a platform that efficiently connects agricultural producers and food consumers.
About COFCO International
COFCO International is the overseas investment and management platform for the agribusinesses of COFCO, with its upstream origination and trading operations linked to the downstream processing and distribution capabilities of COFCO and its affiliates in China to create a fully integrated value chain, consistent with COFCO’s strategy.
COFCO International is the parent company of both COFCO Agri and Nidera. COFCO International actively manages and oversees the operation and compliance of the two subsidiaries via its own management team.
COFCO International is a consortium comprising of COFCO, a leading supplier of diversified products in the Chinese agricultural and food products industry, and other prominent international investors.