Pilmico acquires Vietnamese feeds firm

 Vinh Hoan 1 Feed JSC illustration photo

Pilmico International and Vinh Hoan Corporation last week signed an agreement under which the former would acquire a 70 per cent stake from the the fourth largest aqua feed producer in Vietnam.

The transaction is expected to close in July 2014.

Pilmico International, a wholly-owned subsidiary of Aboitiz Equity Ventures Inc., will purchase the remaining 30 per cent within five years at a pre-agreed price set out in the agreement. The value of the transaction is approximately $28 million.

Business Development Asia (HK) Ltd. acted as financial advisor and Honor Partnership Law Company Limited acted as legal advisor to Vinh Hoan, while Indochina Capital Corporation acted as financial advisor and Gide Loyrette Nouel A.A.R.P.I acted as legal advisor to Pilmico.

Sabin Oboitiz, President and CEO of Pilmico noted, “We are delighted to have this opportunity to expand our feed business and enter Vietnam with such a strong and well respected partner as Vinh Hoan Corporation.”

AEV, through its subsidiary Pilmico Foods Corporation (Pilmico), manufactures and sells flour, feed and their by-products.

Truong Thi Le Khanh, chairwoman of Vinh Hoan Corporation said her corporation and Pilmico would conduct joint research in feed formulation in order to produce the highest quality pangasius, a type of catfish, products to customers worldwide.

Vinh Hoan 1 Feed JSC is a leading supplier of aqua feed based in Dong Thap province. Founded in 2007, it operates a 130,000 tonne a year aqua feed facility producing primarily pangasius feed. Its research and development team operates a pilot farm facility that continuously strives to improve pagnasius health and productivity. It is owned by Vinh Hoan Corporation, the largest producer and exporter of pagnasius in Vietnam.