Salmon smoking plant. (Photo: Alliance Select Foods International)
Alliance Select signs deal to buy Akaroa Salmon NZ
Wednesday, October 03, 2012, 23:50 (GMT + 9)
Leading Filipino canned tuna manufacturer Alliance Select Foods International (ASFI) this week signed a deal to take over 80 per cent of New Zealand-based fresh and smoked salmon processor Akaroa Salmon NZ Ltd.
Alliance Select will invest NZD 2.8 million (USD 2.3 million) to buy the shares, and another NZD 126,881 (USD 105,219) as working capital in Akaroa Salmon, ASFI said in a disclosure to the Philippine Stock Exchange.
Alliance, whose canning facilities are located in General Santos City in Mindanao, said it is paying for the acquisition of Akaroa Salmon “through a private placement of its authorized unissued shares.”
Albert Hong Hin Kay, Bondeast Private Ltd, Mingjing Holdings Inc, S. Chandra Das, George E Sycip and Washington Z Sycip all participated in the private placement, ABS-CBNnews.com reports.
The shares were offered at PHP 1.60 (USD 0.04) each or a 14.57 per cent premium on the 30-day volume weighted average price from 17 May to 22 July 2012, Alliance Select said in its disclosure.
ASFI said it would issue 60,668,750 additional shares for the private placement, constituting 5.67 per cent of the company’s expanded capital.
Back in July, Alliance said that Akaroa was valued at NZD 3.5 million (USD 2.8 million).
The new shares will be listed on the Philippine Stock Exchange at a still-undetermined date, Alliance Select added, Business World reports.
Akaroa, which is considered a pioneer in New Zealand's farmed salmon sectors, runs two marine farms in Akaroa Harbor in South Island and processing facilities in the Riccarton district of Christchurch.
The purchase of these shares in Akaroa will help strengthen the Filipino firm’s salmon business by providing it with direct access to raw materials. As well, it will allow ASFI to conduct business with new markets by offering Akaroa's fresh products to places such as Singapore, Hong Kong, the US, South Korea and Japan.
ASFI first entered the salmon business in 2009; since then, it has expanded from NZD 4.2 million (USD 3.5 million) in revenues in 2009 to an expected NZD 23 million (USD 19.1 million) in revenues for 2012.
- Alliance Select to buy NZ-based salmon firm
By Natalia Real