MANILA, Philippines - Alliance Select Foods International (AFSI), the country's leading canned tuna manufacturer, is acquiring 80% of New Zealand-based processor of fresh and smoked salmon Akaroa Salmon NZ Ltd.
In a disclosure to the stock exchange, Alliance Select said it signed a share purchase agreement for a controlling stake in Akaroa Salmon. The company will invest NZ$2.8 million (P96.5 million) to buy the shares, and another NZ$126,881 as working capital in Akaroa Salmon.
"The company is financing this acquisition through a private placement of its authorized unissued shares," AFSI said.
The investors that participated in the private placement are Albert Hong Hin Kay, Bondeast Private Ltd., Mingjing Holdings Inc., S. Chandra Das, George E. Sycip and Washington Z. Sycip.
Akaroa is considered a pioneer in New Zealand's farmed salmon industry. It operates 2 marine farms in Akaroa Harbor in South Island and processing facilities in the Riccarton district of Christchurch.
The purchase of Akaroa will help strengthen AFSI's salmon business, as it gains direct access to raw materials. It will allow AFSI to target new markets by offering Akaroa's fresh products to new markets such as Singapore, Hong Kong, US, South Korea and Japan.
AFSI first entered the salmon business in 2009, and since then it has grown from $4.2 million in revenues in 2009 to an expected $23 million in revenues this year.