March 21, 2011

Portunus to acquire Vietnamese pangasius processing company

Portunus, a multinational seafood group, is determined to buy over a Vietnam-based pangasius processing company and aims to have more consolidation in the industry.

The move from Portunus to acquire Vinafish, which has been a supplier of pangasius from the Mekong Delta since 2006, is to exert better control on supply, as well as to consolidate the industry, said Prem Lalvani, of Iliad Avenues, the financial advisory boutique which advised on the deal.

"They have a five-year plan to expand the company to sales of VND50 million (US$2.4 million) and possibly look at a listing in Ho Chi Minh. Pangasius companies are struggling for capital. It is a unique opportunity to get into the industry," he said.

"Portunus is seeking opportunities to participate in Vietnam sustainable seafood industry consolidation."

This year is difficult for the pangasius industry. Production has decreased because of the industry's problems securing capital to increase production, after a year of low prices over 2010.