Singapore firm Sakae Holdings invests in Chile’s Cocosa Export

Published on
March 14, 2016

Singaporean firm Sakae Holdings has agreed to purchase a majority share of Chilean canned and frozen seafood producer Cocosa Export on 6 March.

Sakae Holdings will pay USD 3 million (EUR 2.7 million) for a 51 percent stake in Cocosa Export, paid in two installments over two years. Cocosa Export’s founder, Julio Leonardo Pérez Gutiérrez, will retain a 49 percent share of the company.

Sakae Holdings’ primary business is the operation of more than 200 sushi restaurants in Asia and the United States. The purchase of Cocosa Export gives the company upstream capacity and a foothold in the seafood business in South America, according to a financial statement it released following the purchase agreement.

“[The] collaboration will place [Sakae Holdings] in a better position to capitalize on the growth prospects of the overseas markets in terms of the overseas food trading and distribution business as well as in the raw materials supply chain for its [food and beverage] business,” the statement said.

The statement said Cocosa Export has total assets of SGD 8.1 million (USD 5.9 million, EUR 5.3 million) and liabilities of SGD 7.6 million (USD 5.5 million, EUR 5 million), resulting in a net asset value of SGD 500,000 (USD 364,000, EUR 327,000). Cocosa Export’s assets include three properties in Chile valued at CHP 1.65 billion (USD 2.4 million, EUR 2.2 million).

On 28 February, Sakae Holdings announced it would report a loss for the 2015 fiscal year, and on 1 March it announced the loss totaled SGD 5.8 million (USD 4.2 million, EUR 3.8 million). The company chalked up its weak 2015 financial performance to reduced profit margins due to foreign-exchange losses, as well as rising operating costs and bills from legal challenges against its subsidiaries Griffin Real Estate Investment and Gryphon Capital Management. In 2014, Sakae Holdings posted earnings of SGD 2.1 million (USD 1.5 million, EUR 1.37 million).

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