Thai Union’s subsidiary i-Tail Corporation (ITC) has set up new companies in China and the Netherlands to oversee sales of the company’s pet food and pet-related products in the two markets.
The i-Tail (Shanghai) Co. will develop its private labels to expand sales of pet food and pet-related products in China and devleop new opportunities to invest in the petcare business in the country, according to a Thai Union press release. I-Tail Corporation will hold a 100-percent stake in the new company, which will have total registered capital of CNY 10 million (USD 1.43 million, EUR 1.35 million). The new firm is scheduled to commence operation in February 2023.
ITC has also created i-Tail Europe B.V. in the Netherlands to expand sales of ITC’s pet food and pet-related products in Europe, with a focus on the U.K., Germany, France, and the Netherlands. Like the new firm in China, i-Tail Europe B.V. has the twin goals of generating new business with private-label and regional brands in Europe and developing new opportunities of pet food and pet-related products in Europe. The company will have a registered capital of EUR 1 million (USD 1.06 million) and will be fully owned by ITC.
Thai Union is pushing forward with its initial public offering for ITC. In a filing to the Stock Exchange of Thailand on 28 November, Thai Union set the final IPO price for an ITC share at THB 32 (USD 0.92, EUR 0.86). With 132 million newly-issued ordinary shares to be allocated to Thai Union shareholders, the IPO was expected to bring in up to THB 4.224 billion (USD 120.9 million, EUR 113.5 million) in proceeds. In a 15 December announcement, the company said the IPO had actually netted the company THB 1.885 billion (USD 54 million, EUR 50.8 million).
ITC received approval from Thailand’s Office of the Securities and Exchange Commission for its IPO on 20 September, 2022. According to the IPO plan, 660 million ordinary shares of ITC – including 600 million newly-issued ordinary shares and 60 million existing ordinary shares held by Thai Union – will be sold during the offering. Thai Union said in February 2022 that after the planned IPO, its stake in ITC will be reduced to 77.64 percent.
ITC established i-Tail Americas in January 2022 to oversee its pet food business in the United States.
Separately, on 16 December, 2022, Thai Union’s board approved a share-purchase program, calling for the buyback of up to 200 million shares in Thai Union, with value not to exceed THB 3 billion (USD 85.8 million, EUR 80.8 million). The share purchase price will be determined by an average share price of a 30-day period between 3 January and 30 June, 2023.
The company said it was carrying out a share-purchase plan with the goal of using up excess liquidity and increasing its return on equity and earnings per share ratios.
Photo courtesy of Thai Union
