Meat giant JBS is set to acquire 100 per cent of the Tasmanian salmon farming company Huon Aquaculture (Huon) at $3.85 per share under the proposed scheme of arrangement.
The deal values Huon at roughly $425 million and has been unanimously recommended by the board.
Huon founders and major shareholders Frances and Peter Bender own around 53 per cent of issued shares and are voting in favour of the scheme.
Huon managing director and CEO Peter Bender said the recommended acquisition will lead to a good outcome for its shareholders, partners and staff.
“This is a testament to the strong position Huon holds in Australia in the salmon market. We look forward to seeing the continued growth of the Huon business as part of JBS. We do not anticipate any disruptions to business operations,” said Bender.
Huon’s board said it intends to declare a fully-franked dividend worth 12.5 cents a share prior to the implementation of the scheme.
In February, Huon had projected substantially lower earnings for FY2021 with declining international salmon prices and stock losses.
That followed the arrest and charging of five employees from Huon for allegedly taking part in activities that resulted in the reduction of stock records with an estimated inventory value of $2.1 million.
JBS will be funding the scheme transaction through existing cash resources and undrawn debt facilities.
JBS Australia’s president and CEO Brent Eastwood said the Huon acquisition will create more brand awareness with their consumers and customers and progress their Australian protein business.
“We look forward to continue growing on the leading salmon business Huon has created and working with its employees, customers and stakeholders to help the company realise this next phase of growth,” said Eastwood.
The meat giant has been diversifying its protein business, having recently acquired Europe’s third- largest plant-based food producer Vivera in a $528.8 million deal.
Huon shareholders will have the opportunity to vote on the scheme at a shareholder meeting, expected to take place in October.
