TUF Buys Stake In Indian Shrimp Feed Manufacturerff

Source: Bangkok Post

Thai Union Frozen Products PCL. (TUF) yesterday announced it was buying shares of Avanti Feeds Limited (AFL), India’s second largest shrimp feed manufacturer, for approximately 40 million baht.

After the investment, TUF will own a 14.99% stake in AFL, which is listed on the Bombay Stock Exchange.

The investment was helped by the long-term ties between TUF’s subsidiary Thai Union Feedmill (TFM) and Avanti. TFM specializes in producing and distributing feed products for shrimp and fish in Thailand. It has been supporting Avanti with its technical expertise in feed production for black-tiger shrimp over last few years.

In the past, the Indian government has allowed only local farmers to raise black tiger shrimp. However, it has recently allowed white shrimp farming to help increase overall production and exports. TUF expects strong growth in shrimp production in India as a result of the change in policy.

TUF also said it plans to sell two billion baht worth of bonds this year. The bond sales, with maturities of up to five years, “will help us balance short-term borrowings with longer ones”, said financial controller Wai Yat Paco Lee.

TUF had short-term borrowings of 8.79 billion baht, compared with 4.74 billion in long-term debt, on June 30.

TUF shares closed yesterday on the SET at 19.60 baht, down 40 satang, in trade worth 16.39 million baht.

Thai Union Frozen Products PCL is listed in the Atuna Stock Index click here to go to the Stock Index