galumay
learner
- Joined
- 17 September 2011
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I nearly sold TGR last week! Glad i didnt after the price was up 12% on HY results released today.
im having a crack at the tipping comp and im hoping that in a month that this might move forward a little.
Probably my least conviction holding, its managed to have a reasonable year all things considered. Cash flow shows up just how capital intensive this game is, FCF is about -$80m and I cant remember the last FCF +'ve year! I should probably just get out and find a better home for the capital!
I hope you do mike. I've been on these since i started making coolroom doors for their operations in Tassie. I've finally given up. hopefully the timing will work for youONE of these stocks that never really recovered after the March 2020 COVID issues.
Was once a favorite of mine. Back on the radar. See If I can get the timings right?
- Promote dialogue and collaboration between and among small-scale artisanal fishers, fish farmers, fish workers, governments, and other key partners along the value chain, as well as to further strengthen their capacity to enhance sustainability in fisheries and aquaculture and to enhance their social development and well-being.
David Williams lands Canadian aquaculture a prize catch in Tassal raid
Canadian aquaculture giant Cooke has swallowed a 5.4 per cent slice of ASX-listed salmon producer Tassal, and is ready to gobble up more chunks of the Tasmanian-based company.
Cooke was revealed as the mystery buyer of a parcel of Tassal shares on Monday after a 10-day spending spree, buying at prices ranging from $3.42 to $3.85 a share and ending speculation that investment banker David Williams was returning for another bite at the company.
Mr Williams bought Tassal from receivership in 2003 before floating the company.
He has brokered some of the biggest Australian agribusiness deals, including turning around the fortunes of almond producer Select Harvests and returning Vegemite to Australian ownership after convincing Bega Cheese to buy the spread from confectionary titan Mondelez.
While Mr Williams was buying Tassal shares last week under Amore Foods – a private company he launched in 2004 – a substantial shareholder notice lodged on the ASX reveals he was purchasing on behalf of Cooke.
Cooke cast a line on Tassal in 2010 before walking home with an empty catch. It later tossed a lure at rival Huon, with Mr Williams advising them on the bid.
But it was unsuccessful, with Brazilian meat processor JBS acquiring Huon for $425m despite resistance from Andrew Forrest.
Cooke has turnover of some $2.7bn, salmon farms in Canada, US, Chile and Scotland, and has 10,000 employees. It is understood to be wanting to increase its geographic diversification further to help reduce the risks such as adverse weather and disease.
Tassal shares surged 3.1 per cent to $3.97 – a two-year high.
It is understood that Cooke is still active in the market, given Monday’s share jump.
Darn. Shoulda held with my views a takeover was coming.I was wondering why the SP had been climbing this past week.
Darn. Sho...
Insider trading this past few days obviously that ASIC will ignore.
Tassal Group snubs Cooke’s $1.04bn takeover bid
Canadian aquaculture giant Cooke has lobbed a $1.04bn takeover of ASX-listed salmon producer Tassal after acquiring a 5.4 per cent stake in the company.
But Tassal’s board has rejected Cooke’s offer – its third tilt at the company and a 42.2 per cent premium on Tassal’s closing price from when it started buying shares in the company 10 days ago.
Cooke – which has turnover of some $2.7bn, salmon farms in Canada, US, Chile and Scotland, and has 10,000 employees – has proposed an all cash offer to acquire Tassal, priced at $4.85 a share.
Investors piled in, pushing Tassal shares up 15 per cent to $4.56 at the start of trading on the ASX on Tuesday morning.
The latest $4.85 a share offer comes after Tassal’s board rejected two earlier confidential bids from Cooke priced at $4.67 and $4.80 a share respectively. In a statement to the ASX on Tuesday, Tassal said Cooke’s latest offer still isn’t high enough.
“The company’s board of directors has evaluated the Indicative Proposal with the assistance of its financial advisor and has determined that the Indicative Proposal does not reflect the fundamental value of the business and is not in the best interests of shareholders,” Tassal said.
“Accordingly, the company’s board has determined not to engage with Cooke regarding the indicative proposal. Shareholders are advised that they do not need to take any action.
“Tassal has an attractive independent future and is well positioned to deliver growth in shareholder value. The board of directors and management team remain focused on building on the company’s long history and delivering on our strategic objectives.”
Tassal shares have largely traded sideways in the past two years, having shed 23.5 per cent from their peak of $5.19 in August 2019.
Surging global demand for protein has sparked a gold rush, particularly in aquaculture given their efficient food conversion – or how much feed is needed to produce a kilogram of meat. Salmon has ration of close to 1:1.
Cooke’s interest comes after it first had a nibble of Tassal in 2010 and Brazilian meat processing behemoth JBS taking over rival Huon for $425m last year despite resistance from Andrew Forrest.
JBS Australia managing director Brent Eastwood said at The Australian’s Global Food Forum this month that salmon farming was a “misunderstood business” and was an efficient way to help meet surging demand for protein.
“At the end of the day the planet we live on, the surface is 70 per cent water. But the protein we consume today is only 7 per cent fish,” Mr Eastwood said. “In many parts of the world there is overfishing of the available natural wild species of fish. But (salmon farming) is a very sustainable business. It’s very energy efficient and doesn’t use much land.”
Tassal chief executive Mark Ryan said at the company’s latest financial results in February that it was now “experiencing the benefits of scale” after completing its investment in salmon biomass growth.
“Together with the investments in and growth of our prawn business, where we achieve more attractive capital and working capital cycles, Tassal is focused on growing cashflow and optimising returns. We have delivered a stepchange in cash generation and believe Tassal is well positioned to deliver further improvements in cash flow and cash conversion going forward,” Mr Ryan said.
“We are now at scale delivering a sustainable annual salmon harvest of around 40,000 hog tonnes, and optimising sales mix through branded product development in retail leveraging Tassal’s No. 1 salmon and protein brand position, strategically balancing contract unbranded sales, and capitalising on the strong recovery in global pricing and the commencement of pricing recovery in the domestic market.”
Cooke is being advised by investment banker David Williams, who bought Tassal from receivership in 2003 before floating it on the ASX.
Mr Williams has brokered some of the biggest Australian agribusiness deals, including turning around the fortunes of almond producer Select Harvests and returning Vegemite to Australian ownership after convincing Bega Cheese to buy the spread from confectionary titan Mondelez.
He has been buying Tassal shares in the past two weeks under Amore Foods – a private company he launched in 2004 – on behalf of Cooke at prices ranging from $3.42 to $3.85 a share.
Its shares surged 3.1 per cent to $3.97 – a two-year high – after Cooke’s stake in the company was revealed on Monday.
Tassal is being advised by Goldman Sachs as its financial advisor and Herbert Smith Freehills as its legal advisor.
JARED LYNCH REPORTER
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