Zhanjiang Guolian Aquatic Products Co., a China-based marine food processing company, is to buy a minority stake in Indian shrimp processor Royale Marine IMP-EX.
Guolian has signed a deal to subscribe to just over 7.25m newly-issued shares in Royale Marine IMP-EX in a deal worth US$4m.
Following the transaction, Guolian will hold 25.3% stake in Royale Marine, becoming the second-largest shareholder in the company, a filing with the Shenzhen Stock Exchange said.
Guolian, founded in 2001, has developed into a business taking in aquatic seedling, farming, feed, processing, trading. The company listed on the Shenzhen Stock Exchange.
The company markets products including shrimp and tilapia, exporting to more than 40 countries.
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Guolian’s stock-exchange filing said Andhra Pradesh-based Royale Marine’s products are “mainly” sold to China, the US and the EU.
Setting out the rationale for the investment, Guolian said: “Based on the judgment of industrial environment changes such as raw material supply and market demand, the company will focus on developing China and non-US homes and other markets, focusing on developing south-east Asia, South America and other places of origin, using business cooperation and equity investment, etc. – a variety of ways to continuously deepen the company’s sales and procurement layout, and create core competitiveness such as global operations.”