LISTED firm Millennium Global Holdings Inc. (MG) has fully acquired Cebu Canning Corp. (C3) for P6.7 million to
further expand its interest in the seafood business.
The company executed subscription agreements with C3 on Monday to purchase the latter’s primary common shares totaling to 67,000.
The first transaction involves 37,000 primary common shares at a par value of P100 each, or a total of P3.7 million.
The other deal is for P3 million worth of C3 primary common shares equivalent to 30,000—also priced at P100 apiece—to be taken from an increase in authorized capital stock, subject to approval by the Securities and Exchange Commission (SEC). According to MG Corporate Secretary, Information and Compliance Officer Lyra Gracia Lipae-Fabella, the signing of the agreements is in line with the company’s plan to acquire C3 and become its wholly owned unit.
Located at Tresco Compound, Casuntingan, Mandaue, Cebu City, C3 is a family-owned and operated seafood trading entity, primarily engaged in the business of processing pasteurized canned crabmeat, commonly known as blue swimming crab. It exports high-quality canned seafood to clients in the United States (US), including Sigma International Inc., Bonamar Corp., Blue Star, Handy International and Harbor Seafood.
“C3 will become MG’s subsidiary [51 percent] upon approval by the SEC of C3’s increase in authorized capital stock,” Fabella said.
“The completion of the acquisition of C3 [100 percent] will take place upon transfer of all the C3 secondary shares to MG,” she added.
In another development, the company sealed an investment agreement with Chinese businessman Chen Chih-Hsing, whereby the latter will infuse P15 million, payable in three years.
As an investor, Chih-Hsing, who is the president of seafood importation and processing company U Hung Trading Co. Ltd., may opt to convert such amount of fresh capital into stakes in MG, and subject to extension of time as may be mutually agreed upon by both parties.
Formerly IPVG Corp. (IPVG), MGHI was incorporated and registered with the Philippine SEC on May 19, 1964, and has since then focused on growth areas, such as information technology and telecommunications, online computer games and business-process outsourcing.
While it has held numerous businesses under its name, one of its more recognized units is Millennium Ocean Star Corp., which serves as an operating company.
It exports most known seafood and aquaculture products from the Philippines to different areas in Asia, Europe, the US, South America and Canada; as well as imports seafood products from clients globally for local distribution. As of September 30, 2014, MG generated P1.15 billion in revenues attributable to MOSC’s import/export and processing of marine goods and other related products.