Thai Union Group said a bid by Japanese conglomerate Mitsubishi Corp. to increase its stake in the seafood giant has hit a roadblock.
The offer by Mitsubishi to raise its interest in Thai Union to 20% – reported in August – fell short of the minimum acceptance condition, according to the seafood company.
In a filing with the Stock Exchange of Thailand today (29 September), Thai Union said it had been informed by Mitsubishi that the offer lapsed because the number of shares tendered by shareholders during the offer period did not reach the required threshold.
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It will therefore be “deemed automatically cancelled”, Thai Union said.
The offer period ran for 15 business days until Friday, 26 September.
In August, the Japanese major announced a tie-up with Thai Union, along with plans to increase its shareholding.
Mitsubishi, which first invested in Thai Union in 1991, was seeking to acquire a further 13.81% of Thai Union’s shares, boosting its stake from 6.19% to 20%.
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By GlobalDataAt the time, Mitsubishi said the demand for seafood “continues to rise, driven by population growth and shifting consumer preferences in line with economic development”.
Under the stated conditions, the offer would have only proceeded if at least 532.2 million shares were tendered, equivalent to 11.95% of Thai Union’s total issued shares including treasury shares, or 13.81% excluding treasury shares, according to today’s filing.
Mitsubishi had sought to acquire the additional stake for Bt6.65bn ($205m).
Thai Union noted that shareholders who had tendered shares will have them returned in line with the procedures in the offer document.
No shares will be purchased by Mitsubishi under the cancelled offer, and no payments will be made to those shareholders.
Mitsubishi’s stake in Thai Union remains at 238.7 million shares, representing 5.36% of total issued shares including treasury shares, or 6.19% excluding treasury shares.
Thai Union stated that the lapse of the offer will not affect its business plans or operations.
It added that the long-standing collaboration between the two companies will continue.
The company said the offeror “remains committed to the strategic partnership” and will keep exploring “growth opportunities and further collaboration” through its existing shareholding.
Thai Union has a presence in tuna through a number of its brands, including John West and Sealect.
Tuna specifically “stands out for its widespread appeal across both developed and emerging markets”, Mitsubishi said in August.
The move follows on from Mitsubishi’s sale of UK seafood major Princes to Newlat Food for £700m (then $893.6m). Mitsubishi acquired Liverpool-based Princes in 1989.
