February 27, 2013

China Fishery to make offer to acquire Peru's Copeinca



China Fishery Group intends to offer US$556 million to acquire Copeinca ASA, Peru's second-biggest fishing firm. If the deal goes through, China Fishery would become Peru's main producer of fishmeal and fish oil from anchovy.
Copeinca is the largest producer and exporter of fishmeal and fish oil by volume in the world, according to the International Fishmeal and Fish Oil Organisation (IFFO). It enjoys a 10.7% share of Peru's catch quota for anchovy.
Singapore-listed China Fishery, a unit of Hong Kong's Pacific Andes International Holdings Ltd, sells most of its fish in China. It is offering US$9.50 for each Copeinca share and will offer the same price for the firm's Lima-listed securities.
China Fishery said it plans to raise between US$277 million and US$285 million in net proceeds from a sale of rights shares to help pay for the US$556 million-deal, and will use loans and internal funds to pay for the rest of the acquisition.
If the Copeinca acquisition does not go through, China Fishery will use the funds to repay loans, supplement working capital and expand itself.

China Fishery's offer is subject to regulatory approvals, including that of shareholders, and the company securing more than half of Copeinca by April 12, or May 23 if the deadline is extended. China Fishery said that shareholders who own about 14.2% of Copeinca expressed they would accept its offer.
China Fishery has also acquired an option over a Copeinca shareholder's 10.8% stake in the anchovy-fishing firm.