Port Lincoln, Australia-based vertically integrated shellfish producer Yumbah Aquaculture is pursuing a merger with Eyre Peninsula, Australia-based aquaculture company Clean Seas Seafood in a deal worth AUD 28.1 million (USD 17.8 million, EUR 17.1 million).
Clean Seas, the largest producer of yellowtail kingfish outside Japan, appears poised to accept the deal.
In a 19 February press release, Clean Seas announced that its board had moved to progress the deal.
“Following careful consideration, the independent committee of directors has determined that it is in the best interests of [our] shareholders to progress the proposal and allow Yumbah to undertake further due diligence,” the release said. “Subject to Clean Seas and Yumbah agreeing to a scheme implementation deed on terms acceptable to Clean Seas, the directors unanimously intend to recommend that Clean Seas shareholders vote in favor of the proposed scheme ... and each director intends to vote any Clean Seas shares they control in favor of the scheme.”
The two companies are already closely linked.
Anthony Hall serves as the director of Yumbah and the largest shareholder of both companies; Hall holds a 53.6 percent interest in Yumbah and a 22.6 percent controlling stake of Clean Seas capital. Clean Seas Director Gary Higgins also serves as a director and chairman at Yumbah.
The merger proposal comes after Yumbah’s November 2024 buyout of Sydney, Australia-based rock oyster grower East 33.
The merger proposal offers AUD 0.14 (USD 0.09, EUR 0.08) per share in cash to acquire all of Clean Seas’ stock.
An alternative scrip offer, in which Yumbah dividends would be offered to shareholders instead of cash, is also being discussed, though it is not clear what the ratio of Yumbah shares offered would be.
Yumbah’s portfolio already includes Victoria, Australia-based mussel grower Yumbah Sea Farms, oyster grower Cameron of Tasmania, Eyre Peninsula Seafoods, which is the owner of Kinkawooka Shellfish and Boston Bay Mussels, and East 33, all of which have been acquired since 2020.
If the merger goes through, it will mean a major expansion into finfish for the company, which has primarily focused on shellfish traditionally.
