Listed canner Alliance Select Foods International, (ASFII) has purchased six more commercial fishing vessels from BSJ Fishing & Trading in a bid to increase its direct access to fishing grounds.
In a disclosure to the Philippine Stock Exchange (PSE) this week, Alliance Select said it sealed the deal with BSJ Fishing and Trading last Friday.
"With the acquisition of the fishing vessels, ASFII expects to ease its dependence on fish suppliers for its tuna business as it will give the company direct access to raw materials," Alliance Select said in its disclosure.
Alliance Select was not immediately available for comment on the value of the boats.
This is not the first time the company bought a boat from BSJ.
In december last year, Alliance Select bought a boat from the same firm with a fair market value of USD377,350, the canner's second quarter financial report showed.
Alliance Select, formerly Alliance Tuna International, was incorporated in 2003 and began commercial operations in General Santos City in 2004, engaging in tuna processing, canning and the export of canned tuna products to Europe and North America.
The company operates a General Santos City plant with a rated production capacity of 140 tonnes per day, according to its financial statement for the first half.
Forays
Alliance Select recently embarked on a series of foreign forays as part of its portfolio expansion.
These include incorporation of PT Van de Zee, an Indonesian fishing company owned by subsidiary PT International Alliance Foods Indonesia which has secured a fishing allocation from the Indonesian government; and board approval last July to acquire 80 per cent of Akaroa Salmon NZ, a New Zealand-based salmon fishery for USD2.184 million.
Alliance Select officials also said last July that the company was eyeing more "high-valued seafood products" and possible further acquisitions as it targets approximately P24 million (USD579,000) in full-year revenues this year.
The company incurred a net loss of USD516,000 in the first half versus a net income of USD401,713 last year due to higher consolidation expenses from its recent acquisition of United States-based smoked salmon processor Spence & Co, as well as depreciation costs from its plant in General Santos City.
Shares of Alliance Select surged 4.64 per cent to P1.58 yesterday from P1.51 at its previous close.
Source: BusinessWorld
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