Alliance Tuna Invests in New Zealand Salmon Processor
Alliance Tuna International says it will invest more than NZD$1.3 million (US$800,000) to acquire a majority stake in a New Zealand-based salmon processing company as part of its overseas expansion plan, according to a BusinessWorld report.
Alliance Tuna corporate information officer Rajat Balain on Friday disclosed to the Philippine Stock Exchange that the company's board has already approved a plan to conduct a due diligence review on Prime Foods New Zealand.
"Should the result favor an equity investment in Prime Foods, Alliance Tuna must acquire 50 percent plus one share of Prime Foods," the company said.
Additionally, Alliance Tuna will also extend a NZD$150,000 (US$92,000) loan to Prime Foods, which will earn interest at market rate after the first year.
Both companies also plan to establish a joint venture corporation in the Philippines where the majority will be owned by the canned tuna company. Alliance Tuna said the new company, which is expected to begin operations by year's end, will also engage in salmon processing.
"The salmon processed by the new company will be exported all over the world, except New Zealand, which will continue to be served by Prime Foods," said Alliance Tuna.
"With this investment, Alliance Tuna will have a controlling interest in a successful brand in the lucrative Oceania market. In addition to the salmon, the marketing and distribution network of Prime Foods will help the company in selling its canned tuna products in Australia and New Zealand," added Alliance Tuna.