Clearwater shields stakeholders from takeover

Clearwater Seafoods Income Fund on Monday implemented a stakeholders’ rights plan to ensure that all of its stakeholders are “treated fairly” in the event of an unsolicited takeover.

The plan ensures that “sufficient” time and rights are available for the fund’s board of trustees as well as its stakeholders to fully evaluate any offer and pursue alternatives to maximize stakeholders value.

The announcement comes just over a week after Cooke Aquaculture offered to acquire one of Canada’s largest seafood suppliers for CAD 3.50 a share. The New Brunswick-based salmon-farming company already owns a 20.2 percent stake in Clearwater.

At the time, Cooke said the offer represents a 132 percent premium over the volume-weighted average price for the shares in the 20-day leading up to 25 July. “Cooke believes that the proposed offer of CAD 3.50 represents a full and fair value for the [stakeholders], which have not traded above CAD 2 since October 2008, and Clearwater has not paid any distributions to [stakeholders] since January 2008.”

Clearwater’s board of trustees continues to review the bid from Cooke.


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