Canned tuna Chicken of the Sea. (Photo Credit: Chicken of the Sea)

TUF postpones public share offering

Thai Union Frozen Products Pcl (TUF) has decided to temporarily suspend its public share offering plan until the US Department of Justice (DoJ) concludes its antitrust investigation of its subsidiary Tri-Union Seafoods LLC.

The subsidiary being investigated, operating a packaged seafood business in the US under the brand Chicken of the Sea, has received a subpoena requiring the production of relevant information to the DoJ.

TUF was planning to raise almost THB 13 billion (USD 380 million) by offering new shares to existing shareholders to finance its planned purchase of US rival Bumble Bee Seafoods.

For their part, Tri-Union managers explained cooperation has been offered to the DoJ and that the company and other subsidiaries in the US were not yet accused of any breach of laws, but it still needed time to see it through whether the situation would affect Tri-Union business and the acquisition of Bumble Bee or not.

“We are in a process of revising 2015-2016 earnings forecast. The DoJ's investigation may take a while because it concerns the US canned seafood industry as a whole. Accordingly, Bumble Bee acquisition may be delayed or, in a worst case scenario, not happen,” a spokesperson for the finance consulting firm Asia Plus Securities pointed out.

If Bumble Bee acquisition does not happen, the new 2015 net profit would be THB 6.6 billion (USD 190 million), representing a 30 per cent increase year on year, versus the 16.7 per cent year on year growth that had previously been projected.

TUF management also stressed that given this temporary halt, those investors who have completed their subscriptions to date will have their money returned as soon as practicable within the specified period.
 

Related articles:

- TUF expects to raise USD 380 million to finance Bumble Bee purchase
- TUF plans to settle Bumble Bee purchase and discards new acquisitions

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