The last remaining Australian-owned major salmon producer looks set to go to foreign hands, after Canadian aquaculture company Cooke upped its offer for Tassal.
Tassal told the Australian Securities Exchange that it has recommended shareholders accept Cooke's latest $5.23 per share bid, which values the company at $1.1 billion.
Cooke has attempted to purchase Tassal for months, lodging three unsuccessful takeover bids, with the latest in June valued at $4.85 per share.
In a statement to the ASX, Tassal chair James Fazzino said the latest offer followed months of "constructive engagement by the Tassal board with Cooke in order to secure additional value".
"The Tassal board believes the revised proposal reflects appropriate long-term value for the business, and is unanimous in its view that the scheme is in the best interests of Tassal shareholders," he said in the statement.
Tassal chief executive Mark Ryan said the company was a "natural fit" with Cooke, and said the acquisition would "fast-track our goal to be one of the world's most transparent and sustainable protein producers".
Deal set to go to vote in November
Shadforths Financial analyst Sam Baker said it was incredibly likely the deal would be approved when shareholders vote on it in November.
"Given it's around about a 50 per cent premium to the Tassal share price prior to any approach, it looks very likely that this will now proceed," he said.
"Cooke Aquaculture has already obtained Foreign Investment Review Board approval so really at this point the only obstacle is the shareholder vote which will occur.
"But really, at this point, it looks very likely it will be passed by shareholders."
Concerns sale will erode transparency
The potential acquisition of Tassal follows foreign takeovers of Australia's other two major salmon companies.
New Zealand seafood giant Sealord purchased Petuna in 2020, while Brazilian-owned JBS completed its takeover of Huon Aquaculture last year.
Mr Baker said there were issues around public reporting stemming from all three companies no longer being listed on the ASX.
"If Tassal is taken over by Cooke Aquaculture, there will be no obligation as a private company to report to the market publicly on any financial results or even around the financial performance of Tassal," he said.
"This is obviously the same with the other two Tasmanian salmon companies which don't have formal reporting in Australia around their operations and even things like events or incidents that occur with some of their farming operations."
Tassal also reported its annual financial results on Tuesday, recording a net operating profit of $64 million, up 32 per cent on last year on the back of higher global salmon prices.
Environmental campaigners worried
Bob Brown Foundation anti-fish farm campaigner Alistair Allan said the likely sale "spelled more and more disaster" for Tasmania's marine environment.
"The salmon industry needs to de-grow, they need to back off, and this [the proposed sale] points to more and more growth," he said.
"These massive aquaculture companies, they have to damage the environment as part of their business model, and it's ingrained as part of their industries."
Mr Allan said he was also concerned about a lack of transparency as a result of the likely sale.
"We don't know much about this company, we don't know what their plans are for the industry in Tasmania and it removes the idea that this was once a local Tasmanian industry, it's now a for massive profit, foreign-owned industry that will not have Tasmania's interests at heart," he said.
Cooke Aquaculture has been contacted for comment.
