Alliance Select targets six-fold growth of sales from Salmon to US$ 24-M in ’12

July 3, 2012 10:17 pm 

MANILA, July 3 -– Alliance Select Foods International plans to raise more than 60 million shares through private placements this year to finance acquisition of a New Zealand-based salmon company, resulting to a six-fold jump in sales to US$ 24 million (around P1billion).

On the sidelines of the company’s stockholders meeting Tuesday, Alliance Select President and CEO Jonathan Y. Dee said they will acquire 80 percent of Akaroa Salmon NZ Ltd. for about US$ 2.184 million and the former will also invest another US$ 100,000 for AS’s working capital, with the deal expected to be closed in August.

“We’ll try to more than double the capacity of Akaroa from the current 200 metric tons per year to about 500 tons annually in the coming years,” he said.

Dee explained that this foray is expected to increase the company’s salmon sales from the current US$ 4 billion (around P168 million).

Salmon accounts for a lesser share of the Alliance Select’s product at 30 percent with tuna accounting for 70 percent. Its salmon is exported to Europe while the tuna to US.

The company has a tuna canning facility in General Santos City and has a 99.98 percent stake in PT International Alliance Foods Indonesia (IAFI). It also has a license to fish in Indonesian waters.

Dee said the company also intends to introduce other “high-value seafood products” in the coming years but did not elaborate.

In the first quarter this year, the company posted lower profits due to the impact of its acquisition of AIFI but Dee is positive that “it will improve” in the rest of the year. (PNA) DCT/JS/utb

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