Thailand's largest frozen and canned seafood maker Thai Union Frozen Products PCL (TUF) Monday (Jun 21) declined to comment on reports it is among bidders for French canned seafood producer MW Brands, which sells John West brand tuna.

 

"If there's any investment, we'll officially announce it," Financial Controller Wai Yat Paco Lee said.

 

Paris-based MW Brands has an enterprise value of between EUR650 million (US$799.6 millio) and EUR700 million (US$861.1 million), according to reports.

 

While Lee would not comment on the company making a bid for MW Brands, he said TUF would prefer to invest in assets in Europe that could expand its distribution channel.

 

"So far, there's no hint that investing in a factory (in Europe) would provide some cost efficiency," he said.

 

The world's third-largest canned seafood manufacturer was reported to be among several bidders for MW Brands, with final bids due by the end of June.

 

MW Brands is owned by New York-based business Trilantic Partners, which was formerly the private equity arm of the now defunct Lehman Brothers. It bought MW Brands from HJ Heinz for EUR425 million (US$522.6 million) in 2006.

 

TUF's stock price rallied to a historical high of THB49 (US$1.52) last week, extending its gain from the end of 2009 to 62%. The rally was driven by an expectation of more robust earnings from the company this year.

 

President Thiraphong Chansiri said earlier this year that the firm is expected to deliver another record net profit in 2010 after earnings surged 52% in 2009.

 

"From its past performance, the company is likely to invest in assets that already have value like distribution channels. The investment should generate income immediately," said an analyst. "The outcome of TUF's recent investments has not been as impressive as when it bought Chicken of the Sea brand."

 

The company purchased the Chicken of the Sea canned tuna brand - which is sold predominantly in the US - in 1997.