Asian equity group acquires seafood plant stake

Asia-based private equity investment fund Leopard Capital has acquired on Monday (May 10) a 31.48% stake in the Preah Sihanouk-based seafood processing plant Nautisco Seafood Manufacturing for US$1.6 million.

Leopard Capital CEO Douglas Clayton said that the company is confident it was a sound investment. "We are bullish on Cambodia's prospects to break into the global seafood trade," he said.

Clayton said that although both Thailand and Vietnam have been successful in the labour-intensive sector, Cambodia's labour is cheaper and the Kingdom has 440 kilometres of maritime coastline to support a larger fishing industry. It also has abundant land to develop aquaculture.

"In the future, the seafood sector could provide steady jobs to thousands of workers in low-income rural areas, while generating significant export earnings for Cambodia," he stated.

Nautisco Seafood CEO Sam Peou said Monday that he believes the investment and expertise from Leopard Capital will accelerate the company's expansion and success. The proceeds from the transaction will fund working capital requirements and pay off debts.

The seafood manufacturer started as a US$4 million investment play by Canada-based company Nautisco Inc in 2007. According to a statement released on Monday, the firm plans to expand across most facets of the business.

It currently processes wild shrimp but will later move into other seafood products. It also wants to start exporting to Japan and Korea, and later to North America and Europe.

Nautisco aims to increase capacity – its plant is capable of processing up to 30-40 tonnes of seafood per day - from a current rate of 10 tonnes per day.

A statement said the company sources 99% of its shrimp from local fishermen. In the future, the plant may encourage other entrepreneurs to invest in shrimp farms and fish farms, further expanding the industry.