Alliance Tuna To Acquires Majority In A NZ Smoked Seafood Form ff

From GMA News

Listed tuna exporter Alliance Tuna International Inc. will be acquiring majority stake in the “second-largest retailer of smoked seafood” in New Zealand.

The company said there was “no adverse” finding on its due diligence on Prime Foods New Zealand (PFNZ), paving the way for Alliance Tuna to sign an investment agreement with PFNZ totaling 1.3 million New Zealand dollars (about P36.2 million).

In exchange, Alliance Tuna will be owning 50 percent plus 1 share in PFNZ.

The first investment tranche, worth 650,000 New Zealand dollars, will be released immediately while the second tranche, 500,000 New Zealand dollars will be made within the year. An additional loan of 150,000 New Zealand dollars will be extended by Alliance Tuna to PFNZ.

The investment agreement also provides for a possible joint venture in the Philippines by Alliance Tuna and PFNZ, which will also be majority-owned by Alliance Tuna.

“The joint venture corporation (JVC) will likewise engage in the processing and export of salmon. The JVC’s operation in the Philippines is expected to commence towards the end of 2009. The salmon processed at the JVC will be exported all over the world, except New Zealand, which will continue to be served by the PFNZ,” the company said. 

The acquisition cost will be funded by Alliance Tuna through internally-generated funds.

PFNZ is based in Hororata, New Zealand and has been manufacturing and selling smoked seafood since 1994.

PFNZ’s products include hot smoked, cold smoked and marinated salmon. The company has a 35-percent market share in the country. 

Alliance Tuna also said that PFNZ’s flagship brand, Prime Smoke, is a leading brand in New Zealand. PFNZ also processes and packages the Signature Range house brand for Progressive Enterprises, the largest chain of supermarkets in New Zealand.

Alliance Tuna is one of the firms which are listed in the Atuna Stock Index – click here to go to the Stock Index