Tuna-canning firm gets fresh funds

Half a billion pesos in fresh equity for Alliance Select Foods International Inc. had been released from escrow to boost the seafood producer’s funds for working capital and acquisitions.

Alliance disclosed to the Philippine Stock Exchange last week that the release was part of the investment by local firm Strong Oak Inc.

Strong Oak earlier acquired 430.29 million shares of Alliance at P1.31 a share, but of the P563.67 million in proceeds, P507.3 million was put in escrow until such time that these new shares issued to the new investor have been approved for listing on the PSE.

The PSE last week announced that it approved the listing of 430.29 million new common shares effective Aug. 4, paving the way for the release of funds from escrow. This will bring Alliance’s total listed shares to 1.5 billion from 1.07 billion.

Strong Oak acquired 28.7 percent of the shares of Alliance and the proceeds from the investments were seen to “generate greater income from its assets and significantly increase its plant utilization rates at its canned tuna facilities in General Santos City.”

Alliance earlier said it expected to boost its revenues and profits from the capital-raising exercise, a boost to its future growth prospects.

Strong Oak is owned by Seawood Resources Inc., described as a “multibillion-peso Filipino investment company” led by Grace Vera Cruz as managing director. Prior to joining Seawood, Vera Cruz was an engagement manager with McKinsey and Co. and was involved in a number of diverse projects in both Asia and Europe.

Shareholders of Alliance earlier ratified the entry of Strong Oak into the company but management is battling a group of Singaporean stockholders in court over the latter’s allegations of mismanagement and self-dealing. Doris C. Dumlao