Cannery Alliance Select Foods Inc. is set to absorb a 50-percent stake in a New Zealand-based salmon producer under a debt-to-equity deal.
In a disclosure to the Philippine Stock Exchange, Alliance Select said its board approved the offer of Prime Foods NZ Limited to pay the debts owed to Alliance Select with a 50-percent stake.
Prime Foods has partnered with Alliance Select in 2008 to process salmon in a factory in Mindanao to offset the rising cost of production in New Zealand. Big Glory produces smoked salmon.
Their joint venture, Big Glory Bay Salmon and Seafood Company, operates a salmon processing facility in General Santos City. Big glory is 68-percent owned by Alliance Select and 32-percent by Prime Foods.
The debt-to-equity transaction covers the 32-percent stake of Prime Foods in Big Glory, making the joint venture firm a wholly-owned subsidiary of Alliance Select.
In a disclosure, to the Philippine Stock Exchange on Monday, Alliance Select said its board of directors approved the offer of Prime Foods to pay its debt with the 34.699 million shares that represent the 32-percent stake in Big Glory.