Legend Holding’s Joyvio Group is moving forward with its purchase of Santiago, Chile-based salmon farming firm Australis Seafoods, at a price of USD 921,624,000 (EUR 820,123,625).
In a 13 June announcement to Australis shareholders, Australis President Martín Guiloff Salvador said Joyvio is planning to execute is purchase agreement – signed in November 2018 – to take over 100 percent of Australis, at a per-share price of USD 0.135 (EUR 0.12) per share, by 27 June.
Beijing, China-headquartered Legend Holdings is one of the largest companies in the world, with revenue in 2018 of RMB 358.9 billion (USD 51.8 billion, EUR 46.1 billion). Joyvio operates primarily in the foodservice sector, with a focus on fresh fruit and animal protein, and recently turned toward fresh seafood as an opportunity in the Chinese market. The Australis purchase will be routed through Joyvio subsidiary Food Investment SpA.
The purchase price is more than USD 40 million (EUR 35.6 million) higher than the price listed in the initial announcement of the deal, though that agreement was for around 94.5 percent of the company.
The deal received approval from Chile’s Fiscalía Nacional Económica (FNE), a government office with oversight over corporate transactions, on 30 April.
Less than a month later, on 20 May, the FNE approved Australis’ USD 26.5 million (EUR 23.6 million) purchase of Pesquera Torres del Paine Ltda.
When it first announced its intention to buy Australis, Joyvio said it sees salmon as a potentially huge opportunity.
“The tight balance between global supply and demand makes upstream resources the most valuable link in the whole industry chain,” Joyvio said. “The obtaining of upstream salmon resources will help quickly strengthen the brand and market influence of the seafood businesses of Joyvio Group and will improve its cash returns and profitability.”
