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Millennium Global acquires 51% stake in seafood trader
January 13, 2014
Written by Roderick L. Abad Business Mirror
MILLENNIUM Global Holdings Inc. (MGHI) now owns the controlling stake in Millennium Ocean Star Corp. (MOSC) for P137.9 million, pursuant to the company’s plan to expand investments and business operations.
Both parties signed over the weekend a subscription agreement for the acquisition of 51-percent equity in MOSC. As per the transaction MGHI subscribed to 137,908,163 primary common shares of MOSC at a par value of P1.
With the acquisition, MGHI Corporate Secretary, Information and Compliance Officer Lyra Gracia Lipae-Fabelle told the BusinessMirror on Monday that “given [MOSC’s] promising revenue stream, it will be a good acquisition to add value to MGHI.”
Under the agreement, the holding firm will advance P65 million in cash as initial payment.
While the holding firm considers tapping internally generated funds or borrowings to finance the acquisition, Lipae-Fabelle stressed that there are “no final plans yet.”
Upon execution of the subscription agreement, she expects the total purchase price of P137.9 million to be fully paid “within 2014 until early 2015.”
MOSC is engaged in the processing of high-quality seafood and aquaculture products for export and trading of imported marine and other related products. Its key business activities are processing and exporting of various seafood products, such as black tiger shrimps, kisu (asohos) fillets and frozen lobsters, among others. It also imports salmon, mackerel scad, scallops, shrimps and others for the local market, supplying supermarkets, groceries, food processors, hotels and restaurants across the country.
The company has a strong prescence in Japan, Taiwan, Hong Kong, Vietnam, Malaysia, Singapore, United States of America and Canada, among others. MOSC estimates to generate sales between P15 billion and P20 billion in the next five years.