Analysts upgrade earnings outlook for Thai Union Group

Analysts are upgrading earnings forecasts for Thai Union Group (TU), a leading global seafood producer, reflecting second-quarter financial results that were better than expected, a clearer idea of the impacts from US tariffs, and the likelihood of a deeper partnership with Mitsubishi Corp through a 6.65-billion-baht share acquisition.

- NAREERAT WIRIYAPONG

TU informed the Stock Exchange of Thailand (SET) on Monday that Mitsubishi, the Japanese trading and investment company, intends to launch a general offer to acquire an additional 532 million shares, equivalent to 13.8% of its total issued shares, for 12.5 baht apiece.

The acquisition would raise Mitsubishi’s stake to 20% from 6.19% as of July 31. Mitsubishi will only complete the transaction if it can acquire the additional 13.8% stake, excluding treasury shares held by Thai Union, the filing said.

During the offer period, Mitsubishi has no plan to acquire additional shares beyond the 20% threshold.

"Mitsubishi considers this a strategic alliance. The increased shareholding will allow Mitsubishi to better leverage its network to further develop TU’s business," said Tanida Jirapornkasemsuk, an analyst with Maybank Securities (Thailand).