Thai Union Group announced that a proposal from Japanese conglomerate Mitsubishi Corp. to boost its stake in the seafood giant has encountered significant challenges.
The bid from Mitsubishi aimed to raise its ownership in Thai Union to 20%. However, this offer fell short of the necessary acceptance condition, as disclosed by the seafood company.
In its filing with the Stock Exchange of Thailand on 29 September, Thai Union stated that Mitsubishi has indicated the offer has lapsed. This lapse occurred because the number of shares tendered by shareholders during the offer period did not meet the required threshold.
As a result, Thai Union has stated that the offer will be “deemed automatically cancelled.”
The offer period lasted 15 business days, concluding on Friday, 26 September.
In August, Mitsubishi declared a strategic partnership with Thai Union, which included plans for increasing its shareholding.
The Japanese corporation, having initially invested in Thai Union in 1991, aimed to acquire an additional 13.81% of its shares, raising its stake from 6.19% to 20%.
Mitsubishi noted that the demand for seafood “continues to rise, driven by population growth and shifting consumer preferences in line with economic development.”
Under the specified conditions, the offer would only proceed if a minimum of 532.2 million shares were tendered. This amounted to 11.95% of Thai Union’s total issued shares, including treasury shares, or 13.81% without them, as per today’s filing.
Mitsubishi sought to acquire the additional stake at a valuation of Bt6.65bn ($205m).
Thai Union confirmed that any shareholders who tendered their shares will have them returned according to the procedures outlined 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 unchanged at 238.7 million shares, constituting 5.36% of total issued shares, including treasury shares, or 6.19% excluding treasury shares.
Thai Union emphasized that the lapse of the offer will not impact its business plans or operations.
The company reiterated that the long-standing partnership between the two organizations will persist.
Thai Union confirmed that the offeror “remains committed to the strategic partnership” and will continue to explore “growth opportunities and further collaboration” through its existing shareholding.
Thai Union holds a significant presence in tuna through brands such as John West and Sealect.
According to Mitsubishi, tuna specifically “stands out for its widespread appeal across both developed and emerging markets.”
This situation follows Mitsubishi’s previous divestment of the UK seafood major, Princes, to Newlat Food for £700m (approximately $893.6m). Mitsubishi had acquired Liverpool-based Princes back in 1989.
