Canada’s Cooke Aquaculture makes direct takeover pitch to Tassal’s top shareholders

After being rebuffed by Tassal’s board, Cooke Aquaculture chief executive Glenn Cooke has held a ‘meet and greet’ with the salmon producer’s biggest shareholders.

Cooke Aquaculture has made a direct pitch to Tassal’s biggest shareholders, despite the board of the ASX-listed salmon producer rebuffing its $1.04bn takeover offer.

Cooke chief executive Glenn Cooke held a call – described as a “meet and greet” – with Tassal’s 10 biggest shareholders on Wednesday.

During the call Mr Cooke highlighted his family company’s longstanding interest in Australia and Tassal, which began in 2010 and led to its first takeover offer for the group in January 2011.

That offer was unsuccessful but Cooke’s interest in Australia was renewed last year when it made a play for rival Huon, which was ultimately sold to Brazilian firm JBS for $425m.

Cooke Aquaculture chief executive Glenn Cooke had a call with Tassal’s 10 biggest shareholders on Wednesday morning.

Cooke has since lobbed three takeover offers for Tassal, priced at $4.67, $4.80 and $4.85 a share.

Tassal’s board has rejected the bids, believing it undervalues Tassal and “determined not to engage with Cooke”, which has already acquired a 5.4 per cent stake.

Mr Cooke told the Tassal shareholders on the call that the company faces limited growth prospects, and under Cooke’s ownership it could take it to the new markets and the next level. He also gave a summary of Cooke’s history and operations, which includes salmon farms in Canada, the US, Chile and Scotland.

While Tassal’s board said Cooke’s offer was not high enough, Barrenjoey analyst Nick McGarrigle said it “represents a reasonable premium to underlying value”, and offered a higher price earnings multiple than JBS’s takeover of Huon and Salmar’s recent bid for Norway Royal.

Mr McGarrigle lifted his price target for the company from $3.20 to $3.66 per share.

Tassal shares rose 2.2 per cent to close at $4.71 on Wednesday.