Tassal (ASX:TGR) shares gain on AU$1.7B takeover bid by Cooke

August 16, 2022 12:29 PM AEST | By Sonal Goyal

Tassal (ASX:TGR) shares gain on AU$1.7B takeover bid by Cooke — Image source: © Deepillusion | Megapixl.com

Details of the takeover offer received from Cooke

According to Tassal’s release, Cooke would pay a cash consideration of AU$5.23 per share. The takeover bid has valued the company at circa AU$1.1 billion. The bid amount will be affected if the company announces any dividend during FY22.

It is not the first proposal that Tassal received from Cooke. Reportedly, the company has rejected three conditional, indicative and non-binding acquisition proposals. The cash consideration of the proposal were AU$4.67, AU$4.80 and AU$4.85 per Tassal share respectively.

The board has unanimously recommended voting in favour of the scheme.

The acquisition proposal is not subject to any due diligence or financing conditions. According to the announcement, Cooke has obtained the approval of the Foreign Investment Review Board concerning the scheme.

The company expects that implementation of the scheme will occur before the 2022 end.

Key highlights of Tassal’s full-year financial results

In FY22, the company delivered an operating cash flow of AU$139 million, up 128% from the previous year.
The free cashflow increased to AU$95.4 million, up by 224% on prior corresponding period (pcp). Reportedly. It was underpinned by the completion of a substantial infrastructure investment phase and the recovery of salmon prices.
Revenue grew by 33% to AU$789 million.
Operating EBITDA increased by 25% to AU$175 million and statutory increased by 36% to AU$163 million.
Statutory NPAT rose by 60% to AU$55 million.
In FY22, the company sold around 43,000 hg equivalent tonne of salmon.
Prawn volume increased to 5,697 tonnes, 70% up from the previous year. It was driven by an uplift in average yield and harvested tonnes.

Road ahead!

Mark Ryan, CEO and managing director of Tassal, said:

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