Japanese snap up Chilean salmon shares

Multiexport Foods approved to carry out a transaction involving a capital increase of its branch Salmones Multiexport SA (Salmex) for an amount of US$ 100.7 million, which will enable the inclusion of the Japanese company Mitsui & Co. Ltd. (Mitsui) in the ownership of Salmex. The capital increase will be made through the issue of 3,195,712,778 common shares to Mitsui. Consequently, Multiexport Foods will own 76.62% of the shares, while Salmex and Mitsui will hold a 23.37%.

The subscription price of the new shares is subject to a price increase, depending on the fulfillment of the financial results of Salmex during 2016-2018.

The closing of this deal and materialization of the capital increase will be subject to the fulfillment of a series of conditions, which include, among others, the approval by antitrust authorities; the consents by third parties and by the applicable authorities.

The funds to be obtained from the capital increase will be destined to improve the financial position of Salmex, to finance investments in capital assets and to finance the working capital of the company.

On the closing date, Multiexport Foods and Mitsui will enter into a Shareholders Agreement together with Salmex.

José Ramón Guitérrez, executive chairman of Multiexport Foods, highlighted that the “inclusion of Mitsui as new shareholder of the branch Salmones Multiexport constitutes favorable news and a great opportunity, as it deepens and projects in the long term the existing relationship between both companies while it also opens new spaces to expand the commercialization channels for Chilean salmon in the global market; in a time during which the Chilean industry requires to resume with strength the productive and commercial leadership”.

In this sense, Gutierrez stressed “we are sure that Mitsui will contribute all its experience and global presence to Salmones Multiexport adding value to our products, broadening presence in international markets and advancing in improvements in the productive efficiency”.

On the other hand, Mitsui explained its interest in participating in the ownership of Salmones Multiexport given the favorable perspectives presented by Chilean aquaculture, associated to the growth of the global population and worldwide demand for seafood products that constitute a high quality animal protein source. Through the expansion of its association with Multiexport Foods, Mitsui expects to be able to contribute decisively in the development of the Chilean salmon industry.

The Multiexport group and Mitsui have a 20-year relationship, mainly in the commercialization of Chilean salmon in Japan. During year 2013, Multiexport and Mitsui decided to start a joint venture through the branch Multiexport Pacific Farms SA, dedicated to the production and commercialization of coho salmon and trout essentially for the Asian market, including Japan.