November 20, 2018 |
Chinese food service company plans to pay $880m for the Chilean salmon producer
China's Legend Holdings said its food service subsidiary Joyvio has agreed to buy the Chilean salmon producer Australis Seafoods in a deal worth up to $880m.
Joyvio has arranged to acquire 94.5% of Australis for $0.13 per share with the option to pick up the remaining shares through a stock offer on the Santiago stock exchange. Shares in Australis ended last week at CLP63 ($0.09), but they rose almost 30% and touched a high of CLP82 on Monday.
The selling shareholders in Australis are Inversiones ASF, Asesorías e Inversiones Benjamín, Inversiones Ruiseñor Dos and Inversiones Arlequín Dos, Legend said.
Australis recorded $73.4m in net profit on $339m in sales last year. The company produced 64,000 tonnes of salmon in 2017, equal to 9% of total production in Chile, Legend said.
Joyvio joins the local food company Agrosuper, which has acquired a couple of salmon producers in the past few months. Agrosuper went to the local bond market in September and raised UF5.5m ($218m) to buy the salmon farming business of Friosur. It previously agreed to buy 67% of AquaChile for more than $850m in August. Also in August, AquaChile itself bought Salmones Magallanes for $259m.