China Fishery makes $689 million buyout offer for Peru's 2nd largest fishing firm

SINGAPORE-listed China Fishery has unveiled an ambitious US$556 million (S$689 million) cash buyout of Peru's second- largest fishing company.

China Fishery, which has been hit by declining margins and lower catches, said the "transformational" deal to buy Copeinca will turn it into Peru's largest producer of fishmeal and fish oil.

"The acquisition will diversify China Fishery's existing revenue base to balance the proportion of revenue and profit from its contract supply business," it said.

Copeinca is listed in Oslo with a secondary listing in Peru, which is the world's largest producer and exporter of fishmeal and fish oil by volume.

China Fishery will fund the buyout through a rights issue, loan and internal resources.

It expects to raise at least $344.2 million from a one-for-one renounceable underwritten rights issue while the loan facility amounts to US$295 million.