TUF subsidiary Thai Union Manufacturing Co. (Photo: TUF)

Thai Union sets up new subsidiary

THAILAND
Thursday, November 26, 2009, 23:30 (GMT + 9)

Seafood producer and exporter Thai Union Frozen Products PCL (TUF) sent a letter to the Stock Exchange of Thailand on Monday notifying it that it has formed a joint venture that will establish a new subsidiary registered in Papua New Guinea.

The general characteristics of the transaction include a joint venture for setting up a new company through its subsidiary, Thai Union Manufacturing Co, Ltd (TUM), with a 90.08 per cent shareholding percentage.

Thai Union acquired Moresby International Holdings to establish Majestic Seafood Corporation Ltd, a tuna processing and fishing business in Papua New Guinea. The registered capital totals USD 1.5 million with a shareholding structure of 33.333 per cent going to TUM, 33.333 per cent to Century Canning Corporation and 33.333 per cent to Frabelle Fishing Corporation.

Assets are worth USD 500,000. The purpose of the investment is to secure raw material supplies from Papua New Guinea to TUF's facility in Bangkok.

This investment will enable TUF to gain more access to tuna fishing grounds and will also make the company eligible for a 0 per cent duty access to the European Union (EU) market for tuna products processed and exported from Papua New Guinea.

In the letter, TUF certified that the establishment of the new subsidiary is not categorized into any connected transaction classes. The establishment is not covered either by the basis used to consider the volume pursuant to the Securities and Exchange Commission’s (SEC) notification governing the rules, procedures and disclosure of information regarding the acquisition and disposal of the firm’s assets.

Earlier this month, TUM and Japanese seafood company Nippon Suisan Kaisha Ltd (Nissui) signed a deal to produce high-grade tuna oil, thereby reducing seafood by-product waste, under a new company called TN Fine Chemicals Co. This will be Thailand’s first time manufacturing such a product.

TUF is Thailand’s leading producer and exporter of canned and frozen seafood products. It beat its own record in the 2009 third quarter hitting net profits of THB 1.02 billion (USD 30.64 million), a 12 per cent rise from the third quarter in 2008.

Related articles:

- Thai Union, Nissui venture into tuna oil business
- COMPANY OF THE WEEK: Another Record For Thai Union Frozen Products

By Natalia Real
editorial@fis.com
www.fis.com