LOCAL seafood processor Alliance Select Foods Inc. has completed the acquisition of an additional 32-percent interest in a local salmon business from its New-Zealand based partner in the form of a loan settlement.
In a disclosure to the Philippine Stock Exchange on Thursday, Alliance Select said its New Zealand-based partner Prime Foods NZ has completed the transfer of shares of Big Glory Bay Salmon and Seafood Company (BGB) to Alliance Select, equivalent to a 32 percent stake in BGB.
Prime Foods has been in joint venture with Alliance Select since 2008 when it decided to partner with an Asian firm for a manufacturing unit outside New Zealand as a solution to the rising manufacturing costs in its mother country.
The joint venture created BGB, which operates a salmon manufacturing facility in General Santos City. BGB was 68-percent owned by Alliance Select and 32-percent by Prime Foods.
Prime Food’s 32 percent stake in BGB, which is now assigned to Alliance Select, is equivalent to 50.864 million shares at P1 per share. The total transaction cost is 1.376 million New Zealand dollars or $945,690 (about P50 million).
Alliance Select earlier said its investment in salmon processing through BGB elevated the group as a dominant player in the smoked salmon industry in the region, and allowed it to further diversify its product resource.
Formerly Alliance Tuna International Inc., Alliance Select was incorporated in 2003 as a seafood processor which exports its canned seafood products to Europe, North America, Asia, Africa and South America. Its products include institutional and retail packed canned tuna, smoked salmon, salmon by-products and fishmeal that contains tuna loins and other fish parts.
The company has a main canner facility in General Santos City through BGB, and is present globally via subsidiaries in the United States, Thailand, Indonesia and New Zealand.