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Highlights:
- Tassal Group has rejected takeover bid by Canadian firm Cooke after analysing that the offer undervalues the company.
- The company stated it has a bright independent future and it will be better hitting growth alone.
- Tassal’s stock price has gone up significantly on the ASX after this announcement was out.
The shares of Tassal Group Limited (ASX:TGR) were spotted trading 13.350% higher at AU$4.500 per share at 12:00 PM AEST on the ASX today (28 June).
The ASX-listed food and beverage business has announced that it has rejected Cooke Inc.’s takeover offer after carefully analysing the proposal.
The share price of this food and beverage firm has gone up more than 23% on the ASX in last one year. Its year-to-date gain is more than 29% (as of 12:08 PM AEST on the ASX today, 28 June).
Why is Tassal’s share price gaining on the ASX today?
Tassal confirmed today that it had received a non-binding buyout proposal from Canadian firm Cooke Inc. The indicative proposal suggested that Cooke would acquire 100% of Tassal’s ordinary shares by a scheme of arrangement for cash consideration of AU$4.85 per Tassal share.
The announcement revealed that Cooke’s proposal is subjected to several conditions such as Cooke’s board approval, Tassal’s board approval, arrangements for key management and entry into a Scheme Implementation Deed, including exclusivity provisions. Cooke has already secured approval from the Foreign Investment Review Board in relation to the proposal.
However, the board of Tassal determined to reject Cooke’s proposal after evaluating the proposal with the help of its financial advisors. The company, after scrutinising the proposal carefully, ariived on this conclusion that proposal does not fit into the basic value of the business and is not attractive enough for shareholders.
Image source: © Troyzentro | Megapixl.com
Furthermore, the board of Tassal believes that the company holds immense potential to perform well in future and deliver attractive returns to its shareholders. Therefore, the entire team of Tassal, including the board of Directors, management, and other employees, are currently focused on the independent growth of the company by delivering its strategic objectives.
About Tassal:
Tassal Group Limited is an ASX-listed seafood business with a market capitalisation of AU$852.84 million. The company is primarily engaged with the farming, processing, marketing and selling of Atlantic salmon and other kinds of seafood. The company operates both in the domestic as well as export market. Tassal products are marketed through various brands such as Tassal, Superior Gold, and Tasmanian Smokehouse.
