Umios has made further inroads into building up its seafood portfolio by increasing its shareholding in New Zealand processor Sanford.
In a stock exchange filing, Sanford said the Japan-based group has signed an “unconditional” agreement to buy 9.64 million of its shares from Ngāi Tahu Investments for NZ$7.47 (US$4.26) each, valuing the purchase at NZ$72m.
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Following settlement on 2 November, Umios, formerly known as Maruha Nichiro, will hold a 15.5% stake in the NZX-listed seafood business, up from 5.2%.
Umios’ expanded 14.52 million shareholding includes shares held directly, through its New Zealand subsidiary Maruha (NZ) Corp., and under the sale agreement.
The sale marks the second time this year that Ngāi Tahu Investments has cut its stake in Sanford.
In June, Ngāi Tahu sold roughly half of its 19.9% holding, lowering its interest to 10.3%, a stake it is now offloading.
The agreement leaves open the possibility that Umios could pursue a full takeover of Sanford, although no such bid has been announced.
Under the terms of the latest transaction, Umios would have to pay Ngāi Tahu more if it launches a takeover bid for Sanford at a higher price within 12 months or buys more shares above the 17.532% ownership threshold at an average price exceeding NZ$7.47, according to the filing.
Sanford processes seafood including greenshell mussels, salmon, scampi, and wildcatch fish across nine aquaculture sites and five processing plants.
The company booked half-year revenue of NZ$270.2m in the six months to the end of March, down 5.5% year on year.
Net profit after tax, however, rose 24.6% to NZ$42.4m, aided by stronger performances in its salmon and wildcatch divisions.
The Sanford transaction follows a rapid run of dealmaking by Tokyo-listed Umios.
Yesterday (26 October), the group struck an agreement to acquire Canadian frozen seafood specialist High Liner Foods for C$804m (US$573.6m), paying C$27 per share in cash.
At the time, Masaru Ikemi, CEO of Umios, said the High Liner transaction would create a ”complete, vertically integrated value cycle in North America and drive Umios’ sustainable, long-term growth”.
Beyond seafood, Umios has also expanded into pet food. The group purchased a 25.1% stake in Thailand-based pet food and seafood supplier Pataya Food Industries in September, after acquiring a 51% controlling interest in Malaysia’s Pet World International in June.
