Akaroa is considered a pioneer firm in salmon farming in New Zealand. (Photo: Akaroa Salmon/FIS)
Alliance Select to buy NZ-based salmon firm
Wednesday, July 04, 2012, 04:00 (GMT + 9)
Canned tuna maker Alliance Select Foods International (ASFI) wants to acquire salmon farmer and processor Akaroa Salmon NZ Ltd.
ASFI has informed the stock exchange that its board approved a plan to buy an 80 per cent stake in Akaroa, a New Zealand-based salmon farmer and processor of fresh and smoked salmon, for USD 2.18 million. ASFI will also spend USD 100,000 on the salmon firm’s working capital needs.
Alliance said that Akaroa is valued at NZD 3.5 million (USD 2.8 million).
Considered a pioneer in New Zealand's farmed salmon industry, Akaroa runs two salmon farms in Akaroa Harbour in South Island and processing plants in Christchurch, ABS-CBNnews reports.
"Alliance's investment into Akaroa will enable the Kiwi company to double its farming capacity in the coming years and support its plans to be an export leader into key high-end markets globally," ASFI said.
The purchase of Akaroa will let ASFI obtain raw materials directly and thus strengthen its salmon business, as well as push ASFI into new markets such as Singapore, Hong Kong, the US, South Korea and Japan.
Since it entered the salmon business in 2009, ASFI has grown from USD 4.2 million in revenues to USD 23 million this year.
"With continued investments in this segment, Alliance is on its way to achieve its goal of becoming a significant player in the global salmon industry," the company announced.
To pay for the purchase of Akaroa, ASFI will run a private placement offering of its authorized but unissued capital stock. The company will issue 60,668,750 additional shares -- 5.67 per cent of its expanded capital -- offered at a price of PHP 1.60 (USD 0.04) per share.
In addition, ASFI management has received the authority to negotiate and sign a share purchase agreement with Akaroa, which is expected to be completed by August 2012. The private placement offering is expected to close before then.
By Natalia Real