Thai Union Frozen Products Plc (TUF) has confirmed that the US Department of Justice (DOJ) is conducting an antitrust investigation of the packaged seafood industry in the United States and that Tri-Union Seafoods LLC, a subsidiary operating in that country under the brand Chicken of the Sea, has received a subpoena requiring the production of relevant information.
Under the circumstances, the Bangkok-headquartered company suspended a share offering to raise capital to finance a $1.5 million deal to acquire San Diego, California-based Bumble Bee Seafoods, which was set for July 20-24. It declined to comment on the investigation other than to say that Chicken of the Sea is cooperating fully with the DOJ and continues to operate its business as usual.
“The board of directors believes it is prudent to await additional clarity on this investigation before proceeding with Thai Union’s preferential public offering (PPO),” the company announced in a website posting (www.thaiuniongroup.com).
TUF added that it may decide to resume the share offering after further consideration of the situation and consultation with legal advisors. Investors who have completed their subscriptions to date will have their funds returned as soon as practicable. If for some reason a refund is not made within a period of 14 days after July 22, a 7.5% interest rate will be paid on top of the outstanding amount.
