Samuel Dyer Coriat has 32 pc of Copeinca shares, a company the group China Fishery has interest in. (Photo: FIS Stock) (Photo Credit: FIS Stock)

Asian businessmen's interest in buying Peruvian firms persists

PERU
Wednesday, March 06, 2013, 01:40 (GMT + 9)

Industry sources claim that the fishing companies China Fishery Group Limited (CFGL) and Dongwon Group will not easily give in to their desire to acquire Peruvian businesses despite the drawbacks that may arise during negotiations.

The Chinese firm plans to buy the fishmeal and fish oil producing firm Copeinca ASA while the Korean company is interested in Pesquera Diamante.

On the one hand, the managers of Diamante have ensured that a concrete proposal from Dongwon has not been received yet and that the offer of USD 556 million does not encourage them to start negotiations, either.

But this lack of interest will not discourage the Asian entrepreneurs at all, one of the sources consulted by the newspaper Gestión said.

"They will not sit back if [the two Asian firms] do not perform the purchase now. Yet within a few months further negotiations can take place. They will insist, and if it is not possible to buy these companies, they will try to purchase others," added sources from the sector.

Regarding Copeinca, its controlling shareholders have expressed no intention of selling.

The group led by Samuel Dyer, who owns 32.6 per cent of the shares together with Weilhem Invesment, with a share of 6 per cent, is trying to convince the other shareholders not to sell, and thus cancel the "hostile offer" made by CFGL.

One of the goals is that Ocean Harvest, which has a 13.9 per cent share of Copeinca, does not sell its shared, and thus can keep control of just over 51 per cent of the company.

According to the Board of Copeinca, Dyer Coriat Holding has a 32.6 per cent stake and Weilheim Investments owns another 6 per cent, and none of them finds the proposed bid of USD 556 million is appealing.

Furthermore, none of these two shareholders is planning to sell their shares in an offer based on the terms and conditions presented by China Fishery.

If Copeinca accepts the offer, China Fishery would become the largest producer of fishmeal and fish oil from anchovy in Peru.

The analyst Luis Ordoñez, of Inteligo SAB pointed out in this regard: "If the share is at USD 7.83 each and there are people willing to pay USD 9.43, which is the value revealed by the Asian company, people assume that the share would be worth that price or a little more. It is taken as a reference. This explains why the share has risen so much these days. "

"The interest expressed by the two Asian companies in the Peruvian fishing industry shows that the sector is valuable and is interesting to foreign investors. The sector was badly beaten last year as a result of the low fishing quotas, but this year a certain turn for the better is expected. And this has been confirmed by the fact that foreign companies are interested in buying Diamante and Copeinca," Ordoñez expressed in his statements to the newspaper Gestión.

Related articles:

- Copeinca sets China Fishery offer straight
- South Korean company interested in acquiring Pesquera Diamante

By Analia Murias
[email protected]
www.seafood.media

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