Proposed Yumbah-Clean Seas merger clears another hurdle for completion

One of the final hurdles in the process of Australian shellfish producer Yumbah Aquaculture's proposed take-over of yellowtail kingfish farmer Clean Seas Seafood has now been surpassed, with the news that Clean Seas shareholders have voted in favour of the merger.

In a stock exchange announcement, Clean Seas stated that 98.78% of its shareholders had voted in favour of the deal.

The company said the proposal will now be considered at a hearing by the Federal Court of Australia on 15 July, before going before the Australian Securities and Investments Commission for final approval.

Clean Seas Seafood Limited (CSS), which is listed on the Australian stock exchange ASX, previously signed a formal agreement with Yumbah Aquaculture Ltd, under which Yumbah will acquire 100% of Clean Seas' shares through a legal process known as a "scheme of arrangement".

The Clean Seas Board previously unanimously recommended that shareholders vote in favour of the scheme. In May, Clean Seas IBC member Katelyn Adams argued that "By combining expertise in aquaculture and sustainable seafood production, the combined entity will be well-positioned as a leading provider in Australia’s aquaculture industry."

Yumbah is one of Australia’s largest abalone producers, and is also involved in the production of oysters, mussels, aquafeed, and oyster spat. The firm previously merged with Eyre Peninsula Seafoods, then Australia's largest mussel farming and processing company, in 2023.

Yumbah's director and majority shareholder Anthony Hall is also Clean Seas Seafood’s largest shareholder, while Gary Higgins, a non-executive director of Clean Seas, is also non-executive chairman of the board at Yumbah. If approved, the takeover of Clean Seas would see the shellfish aquaculture company take on finfish farming activities for the first time.