Takeover of Adelaide fishing firm gets court approval
A nearly $30 million takeover of Adelaide-based Clean Seas has been approved by the Federal Court.
A deal worth about $29 million has been given the go-ahead by the Federal Court of Australia, meaning Yumbah Aquaculture can move forward with its purchase of Royal Park-based Clean Seas.
The Port Lincoln-based abalone producer lobbed its cash offer in February this year, with the deal to give the company an interest in Clean Seas’ Yellowtail Kingfish.
The deal will become legally effective later today, with Clean Seas to also be suspended from trading on the ASX at close of trading today.
Shareholders in Clean Seas will receive 14 cents in cash per share, or the alternative offer of one new Yumbah share for every 2.8571 Clean Seas shares held.
Clean Seas shareholders voted in favour of the deal at a scheme meeting earlier this month, with 81.55 per cent of shareholders present and voting giving the deal the green light.
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The company’s board established an independent committee to evaluate and negotiate the proposed transaction in February. In March, that committee recommended shareholders vote in favour of the deal.
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“The merger of Clean Seas and Yumbah represents a strategic alignment that enhances operational capabilities, market reach, and long-term growth potential,” independent committee member Katelyn Adams said.
“By combining expertise in aquaculture and sustainable seafood production, the combined entity will be well-positioned as a leading provider in Australia’s aquaculture industry.”
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Algal bloom update
The news follows an update from Clean Seas earlier this month about the impact of the harmful algal bloom on its fish.
The company said Clean Seas detected the presence of the algal bloom – karenia mikimotoi – in its Arno Bay hatchery on July 4.
This coincided with “elevated mortalities of fish contained in the hatchery”.
The hatchery holds both Kingfish broodsrock and first of four planned intakes of its Year Class 26.
“At this stage, mortalities have been most concentrated among the smallest fingerlings, while the broodstock appear to be less impacted,” the company said.
“Clean Seas has long-established contingency plans in place, including additional broodstock held in sea cages in Port Lincoln.
“The company also retains the operational flexibility to increase both the size and number of future Year Class 26 intakes to ensure ongoing stocking levels and, ultimately, harvest numbers.”
The board said that the current number of viable fingerlings in the hatchery meant “there will be no material reduction in future harvests or sales”.
“Accordingly, there is no change to the company’s previously provided guidance,” the company said.
