Alliance Tuna enters smoked seafood business
abs-cbnNEWS.com | 01/07/2009 4:05 PM
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Alliance Tuna International Inc. has acquired a majority stake in New Zealand-based smoked seafood manufacturer Prime Foods in an effort to enter the growing smoked seafood business.
In a disclosure to the stock exchange, Alliance Tuna said it will buy majority--50 percent plus one share--of Prime Foods for NZD 1.15 million or roughly P32 million. Payment will be in two tranches.
The first tranche of NZD 650,000 and the second tranche of half a million New Zealand dollars will be paid within the year.
Publicly-listed Alliance Tuna said that on top of its equity investment in Prime Foods, it will also extend a loan of NZD 150,000 to the smoked seafood retailer. Interest on the loan will be at a market rates after the first year.
Prime Foods is the second largest retailer supplier of smoked seafood in New Zealand with a market share of 35 percent. It also processes and packages the Signature Range house brand for Progressive Enterprises, the largest chain of supermarkets in New Zealand.
Alliance Tuna is currently engaged in tuna processing, canning and export.
Alliance Tuna currently exports canned, processed tuna to Europe, North America, Asia, Africa and South America. It is has a private label manufacturer of canned tuna and processes and tuna cans using its customers' brands.
It also said it 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.
