Tuna exporter Alliance Tuna International Inc. (ATII) has formalized its entry in the growing smoked seafood market overseas by acquiring a sizeable stake in New Zealand-based smoked seafood manufacturer Prime Foods. In its disclosure to the stock exchange ATII said that it will buy 50 percent plus one share of Prime Foods for NZ$1.15 million (about P32 million).
According to the company the payment for the acquisition will be made in two tranches. The first tranche will be in the amount of NZ$650,000, while a second tranche of NZ$500,000 will be made within the year. The acquisition will be funded through internally generated funds.
The company also said that beside the equity investment, ATII will also extend a loan of NZ$150,000 to Prime Foods, which will earn interest at market rate after the first year. It is proud to be a part of Prime Foods, the second-largest retailer supplier of smoked seafood in New Zealand with a market share of 35 percent. Prime Foods also processes and packages the Signature Range house brand for Progressive Enterprises, the largest chain of supermarkets in New Zealand.
ATII explained that this investment augurs well for the company, which will complement its main business of tuna processing, canning and export. It also said that the company is mulling the creation of a joint venture corporation to handle its smoked salmon and seafood business in the Philippines. The proposed company will likely begin operations by the end-2009.
