Last Friday, TUF announced it would issue 795m new shares for a US$400m capital increase to partly fund its acquisition of Bumble Bee (enterprise value of US$1,510m). The capital raising was to proceed through a preferential public offering to existing shareholders at a ratio of 6 existing shares for 1 new share at an offer price of Bt16/share, a 23% discount to the market price. But this morning, brokers, research analysts, ibankers covering TUF are having a hectic morning because the company has announced.

Tri-Union Seafoods LLC (Tri-Union), a subsidiary of the Company operating a packaged seafood business in the United States under the brand Chicken of the Sea, has received a subpoena from the U.S. Department of Justice (the DOJ) requiring Tri-Union to provide relevant information to the DOJ in relation to an antitrust investigation of the packaged seafood industry in the United States

Source: TUF

And now they’ve had to put their capital increase on hold, it’ll be interesting to see if this just a delay in their acquisition plans or something else.