China’s Joyvio buys Unit’s Chilean salmon joint venture to reduce debt
(Yicai Global) July 28 — Joyvio Group buys $62.5 million in bonds issued by a joint venture created by its seafood distribution subsidiary Joyvio Food to take control of a Chilean salmon company . The Chinese fruit retailer will then convert the bonds into shares to help improve the unit’s financial situation.
Fresh Investment was formed by Joyvio Food and investment firm Cangyuan Investment in March 2019 when it acquired Chilean Australis Seafoods, one of the top 10 salmon farms in the world. Joyvio Food owns an 80.62% stake in Fresh and Cangyuan Investment the rest.
At the time, to help with the acquisition of Santiago-based Australis, Cangyuan purchased $125 million worth of convertible bonds issued by Fresh with a five-year term. Joyvio Group, based in Changde, central Hunan Province, is now buying half, so they each own half of Fresh’s convertible bonds.
Joyvio Group will convert the bonds into shares to reduce Joyvio Food’s debt ratio and improve its capital composition, Joyvio Food said yesterday. The move indicates that Joyvio Group is confident about the profitability of Australia Seafood as the salmon market has made a comeback since last year, it added.
The value of Chilean fish exports jumped 34% in the second quarter from the same period last year to $1.5 billion, according to the Chilean Salmon Council. And the export volume increased by 2.7% to 162,300 tons.
Editor: Kim Taylor