Fish canner Alliance Tuna International Inc. (ATII) is raising its stake in Indonesian canned tuna subsidiary PT International Alliance Foods Indonesia to almost 90 percent.

In a disclosure to the Philippine Stock Exchange Thursday, ATII said it will be increasing its equity investment in PTIAFI from $825,600 to $4.5 million by converting outstanding cash advances.

The cash advances amounting to $3.67 million will be converted to equity by applying it as payment for an additional 3.67 million shares in PTIAFI at the par value of $1.00 per share to increase its stake from 79.92 percent to 89.98 percent of PTIAFI.

“Our partner in the subsidiary, PT Wailan Pratama will also convert its part of its advances and increase its shareholdings from 206,400 shares to 500,000 shares with a par value of $1.00 (per share),” ATII said.

The increase in equity investment is subject to the approval by the board of directors of PTIAFI and by the Departemen Hukum Dan Hak Asasi Manusia (Department of Law and Human Rights) of the Republic of Indonesia as an amendment to the Articles of Incorporation of PTIAFI.

Meanwhile, ATII is amending its incorporation papers to change its name to Alliance Select Foods International Inc. and to expand its primary purpose to include processing and canning of other food products other than tuna and seafood.

ATII reported that its consolidated comprehensive income attributable to the equity holder of the parent more than tripled from $220,000 in 2009 to $676,000 in the first quarter of 2010 due to lower cost of fish and better cost control measures.

The firm said that, after more than a year of contracting economic growth in the ATII’s major markets worldwide, the first quarter saw an increase in consumer spending.

Pricing pressures on canned tuna eased and ATII was able to close sales contracts at higher prices. The company said its marketing strategies focused on profitability rather than sales volume.

Both of the company’s subsidiaries, PT International Alliance Foods Indonesia and Prime Foods New Zealand contributed to the increase in gross profit and gross profit margins.