Yellowtail kingfish.
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A possible merger is on the cards for two of Australia's leading aquaculture companies, with the news that shellfish producer Yumbah Aquaculture has proposed a merger with yellowtail kingfish farmer Clean Seas Seafood, based in Port Lincoln, South Australia.
Yumbah, which describes itself as "the largest producer of abalone in the Southern Hemisphere", operates at various locations in South Australia, Victoria, Tasmania and New South Wales. The vertically-integrated company also produces and supplies oysters, mussels, aquafeed and oyster spat.
Clean Seas Seafood, which began farming yellowtail kingfish in southern Australia in 2002, produces its fish under the brands Spencer Gulf Kingfish and South Australian Yellowtail Kingfish.
The proposed deal, announced on 19 February, would see Yumbah acquire 100% of Clean Seas’ shares, offering $0.14 per share in cash or an alternative option to receive Yumbah shares.
According to a stock exchange announcement by Clean Seas Seafood (CSS), Yumbah's proposal represents a 52.2% premium on CSS’s last trading price. CSS says it has now formed an independent board committee (IBC) to assess the offer.
The merger would combine Clean Seas Seafood’s yellowtail kingfish operations with Yumbah’s shellfish production, creating a major player in the Australian seafood industry.
Yumbah, which specializes in abalone, oysters, and mussels, is led by majority shareholder Anthony Hall, who is also Clean Seas Seafood’s largest shareholder with a 22.6% stake.
The company has been granted exclusive due diligence rights until March 24, 2025, during which it will assess CSS’s financial and operational details before finalizing the deal.