MANILA, Philippines - Listed seafood exporter Millennium Global Holdings Inc. has taken majority ownership of a family-run seafood company based in Cebu after sealing a couple of subscription agreements yesterday.
Millennium Global told the local bourse that it subscribed to 67,000 primary common shares of Cebu Canning Corp. (C3) at P100 apiece, for a total amount of P6.7 million.
The company said 30,000 of the total shares it subscribed into would be taken from an increase in authorized capital stock, subject to the approval of the Securities and Exchange Commission.
“The execution of the subscription agreements with C3 is pursuant to the plan to fully acquire C3 as a wholly-owned subsidiary of MG,” Millennium Global said.
“C3 will become Millennium Global’s subsidiary (51 percent) upon approval by the SEC of C3’s increase in authorized capital stock. The completion of the acquisition of C3 (100 percent) will take place upon transfer of all the C3 secondary shares to Millennium Global,” the firm added.
C3, a local firm incorporated in 2008, is primarily engaged in the business of processing pasteurized canned crabmeat commonly known as blue swimming crab, and exports high quality canned seafood mainly to the US.
C3’s clientele include Sigma International Inc., Bonamar Corp., Blue Star, Handy International and Harbor Seafood, a US based company operating since 1975.
Millennium Global, meanwhile, formalized in 2013 its shift to the seafood export business from the information technology business.
The firm early last year acquired 51 percent controlling interest in Millennium Ocean Star Corp., a firm engaged in the processing and export of several quality and high-valued seafood and aquaculture products.
Aside from the subscription agreements it entered with C3, the company yesterday said it also executed an investment agreement with Chen Chih-Hsing, a Chinese national who serves as president of U Hung Trading Co. Ltd.
Millennium Global said Chih-Hsing has further infused P15 million into the company payable in three years and convertible into equity at the option of the investor.