© Clean Seas Seafood
Clean Seas Seafood - a South Australian producer of yellowtail kingfish - has announced a proposal received from Yumbah Aquaculture for the merging of the two companies as Yumbah seeks to expand its operations.
The proposal, which has been described by Clean Seas as "non-binding, indicative, and incomplete," outlines plans for a 100 percent acquisition of the yellowtail farming company by Yumbah for a price of $0.14 per share.
The merger proposal comes as Clean Seas struggles against ongoing operational and financial challenges, with high mortalities for the company's 2024 yellowtail cohort and a bottom-line loss of $33.45 million in the last financial year.
"Following careful consideration, the IBC (independent committee of directors) has determined that it is in the best interests of Clean Seas Seafood shareholders to progress the proposal and allow Yumbah to undertake further due diligence,” said a representative for Clean Seas, as reported by Business News Australia.
“Subject to Clean Seas and Yumbah agreeing to a SID (scheme implementation deed) on terms acceptable to Clean Seas, the IBC unanimously intends to recommend that Clean Seas Seafood shareholders vote in favour of the proposed scheme (at the current offer price of $0.14 per share) and each director intends to vote any Clean Seas shares they control in favour of the scheme," they concluded.
