Alliance Select Foods International Inc, a listed company in the Philippines, will be acquiring its joint venture company by accepting the debt-to-equity offer from its New Zealand-based business partner Prime Foods NZ Limited.
Alliance Select earlier informed the stock exchange that its board of directors have accepted Prime Foods’ offer to fully settle its existing loan obligations with 32 per cent of its stake in the Big Glory Bay Salmon and Seafood Company Inc (BGB), which will serve as full payment for its $945,690 debt.
BGB is a smoked salmon JV company that Alliance Select and Prime Foods formed in 2008. BGB imports salmon from New Zealand, Chile, and Norway and processes it in General Santos City in Mindanao, Philippines.
The transaction will result in BGB becoming a wholly-owned subsidiary of Alliance Select.
Alliance Select accepted a total of 34,699,426 BGB shares as full payment for Prime Foods’ payment obligations, priced at P1.00 apiece.
The company took into consideration the operational flexibility of operating BGB as a wholly owned subsidiary.
Alliance Select’s last trading price decreased 2.13 per cent or P0.020 to close at P0.92.