Bangkok, Thailand-based food giant Charoen Pokphand Foods’ (CP Foods) Vietnam unit, C.P. Vietnam, has raised its stake in shrimp producer Fimex to 25 percent.
The company’s new ownership stake in Fimex was revealed when C.P. Vietnam and Vietnamese PAN Group – which holds the majority shares in Fimex – signed a strategic cooperation agreement on 9 December, according to a statement from the PAN Group.
On 22 October, Fimex sought approval from its stakeholders to sell 6.5 million newly-issued shares to C.P Vietnam, which accounted for 11.11 percent of Fimex’s total shares before the issuance. With the offer price of VND 50,000 (USD 2.20, EUR 1.90) per share, C.P. Vietnam would have paid Fimex VND 326.9 billion (USD 14.2 million, EUR 12.6 million) for the latest transaction to raise its stake in Fimex to nearly 25 percent in total.
Fimex said the COVID-19 pandemic has disrupted the supply chain in the shrimp industry and affected its farming and export activities. The funds from the deal, it said, will help the shrimp producer to recover from the pandemic and strengthen its export capacity.
Under the terms of the deal, C.P. Vietnam will increase its supply of shrimp larvae and shrimp feeds for Fimex, while the Vietnamese producer will share with C.P. Vietnam its expertise in shrimp farming and processing. The two sides will also collaborate to expand Fimex’s farming areas, diversify its processed products, and further expand its export markets.
In November 2021, Fimex produced 2,360 metric tons (MT) of processed shrimp, an increase of 22 percent year-on-year. It sold 1,697 MT of shrimp in the month, up 7 percent from a year earlier. Fimex’s sales value in November, including sales of agricultural products, surged 14 percent year-on-year to USD 20.3 million (EUR 17.9 million).
Fimex said it has already finished harvesting its last shrimp crop in 2021 and is now in the process of preparing for next year’s main crop. In November, the company focused on finishing year-end orders from Japan and Asian markets, it said.
Photo courtesy of C.P. Vietnam
