Pacific Andes Resources Development (PARD) has acquired a 19.8% stake in Australian salmon producer, Tassal. The Singaporean company paid AUD 51.7 million (€38.5 million/$50.9 million), or AUD 1.79 (€1.33/$1.76) per share, for the stake. Tassal recently rejected a hostile takeover bid from Pacific Equity Partners which was prepared to pay AUD 1.80-1.90 per share.
Leading global frozen fish supplier PARD is to acquire a total of 28,910,367 shares in Tassal, which is the largest salmon aquaculture company in Australia.
In 2010, it harvested more than 12,000 tonnes of salmon and accounted for about 70% of Australia’s total salmon production.
Commenting on the investment, PARD executive director and chairman Ng Joo Siang said: “As Australia’s largest producer and marketer of salmon with highly recognised brand names, Tassal is well-positioned as a clear market leader to benefit from the growing Asian demand, particularly in China and metropolitan South East Asia, for salmon.
“PARD is always on the lookout for opportunities to invest in high-quality resources that are limited in supply, yet enjoy a strong demand. Tassal is a perfect investment fit for the group.
“Seafood is an industry that the group is very familiar with, and the Australian farmed salmon industry is well-protected with high barriers to entry. The Australian Quarantine and Inspection Service (AQIS) import restrictions and the Tasmanian Government Biosecurity measures combined result in one of the world’s most controlled and healthy farmed salmon supplies.”
Ng added that Tassal has a strong management team at the helm that has delivered EBITDA growth of 34% CAGR over the past five years to reach AUD 50.3 million (€37.4 million/$49.5 million) in FY2010.
“The company’s strong fundamentals, exciting growth prospects and attractive valuation make this a compelling investment for PARD and we look forward to positive outcomes from this investment,” he said.
PARD expects the deal to be completed in January next year.
