Thai Union Feedmill (TFM), a subsidiary of seafood giant Thai Union, has formed a new feed joint venture in Pakistan.
Thai Union Feedmill owns a 51 percent stake in the joint venture, with eight local stakeholders holding the remaining 49 percent, Thai Union said in a statement on 8 April.
The new company, registered under the laws of Pakistan, will focus on production and distribution of “aquatic feed, livestock feed, pet food, shrimp and fish farming, shrimp and fish hatchery and seafood processing.”
Its registered authorized capital is PKR 340 million (USD 2.21 million, EUR 1.86 million).
“The executive committee remarks that investment in AMG-THAIUNION FEEDMILL (PRIVATE) LIMITED, which is demonstrated as aforementioned, is appropriate and benefits to the company which can increase revenue and profits to the group companies,” Thai Union said.
In February, Thai Union announced it plans to list TFM on the Stock Exchange of Thailand (SET) through an initial public offering (IPO). Pending approval from the bourse, the listing will result in a reduction in Thai Union’s equity interests in TFM and is seen as a disposal of an asset by a listed company, Thai Union said. It added that the decision to conduct the IPO is a result of several factors including market conditions and investor demand.
Thai Union currently holds 66.9 percent of issued shares in TFM, but that total will decrease to 51 percent after the IPO. It plans to use the capital earned from the IPO to support business expansion. The offering price has not been announced yet.
According to Thai Union, the reduction of shares in TFM reflects part of the reorganization of its business structure. The IPO will help Thai Union “relieve a long-term financial burden in relation to fund or long-term financial support given to TFM because TFM will be able to independently raise funds through this IPO, or at any time through the SET or other channels using various kinds of financial instruments after it becomes a SET-listed company,” the firm said.
Photo courtesy of Thai Union
