Cooke set to takeover Tassal after huge vote in favour

More than 96 per cent of Tassal shareholders have voted in favour of the proposed acquisition of the company by Canadian firm Cooke at a meeting in Melbourne.

MORE than 96 per cent of Tassal shareholders have voted in favour of the proposed acquisition of the company by Canadian firm Cooke at a meeting in Melbourne.

The Scheme remains subject to court approval, with implementation expected on November 21.

Tassal has told the ASX that 96.56 per cent of the votes cast by shareholders were in favour of the Scheme Resolution.

The Scheme remains subject to the approval of the court at the hearing scheduled for 9:15am on November 8.

“If the outstanding conditions precedent are satisfied or waived (if applicable) prior to the hearing, and the court approves the scheme, Tassal proposes to lodge an office copy of the orders of the court with the Australian Securities and Investments Commission - at which time the scheme will become legally effective,” Tassal’s statement said.

“It is then expected that Tassal shares will be suspended from trading on the ASX from the close of trading on November 9.

“On November 21, the scheme will be implemented and the cash consideration of $5.23 per Tassal share will be paid to Tassal Shareholders (other than certain excluded Tassal Shareholders) in respect of all Tassal shares held on the Scheme Record Date which is expected to be November 14.”

‘Don’t make the same mistake’: US group’s plea on Tassal takeover

THE takeover of Tassal by Canadian seafood giant Cooke could lead to less transparency around fish farming in Tasmania, a leading business academic says.

Meanwhile, Tasmanian and international environment groups have joined forces to condemn the takeover to be considered by shareholders on Thursday.

Cooke, a private family-owned company, is set to acquire Tassal for around $1.1bn.

University of Sydney Business School senior lecturer in finance Danika Wright said the takeover was interesting on several levels.

The entry of a private company into the Tasmanian aquaculture scene meant the pressure would be on state government to guarantee transparency and regulation of the industry, Dr Wright said.

“Compared to Tassal currently, as a private company it doesn’t have quite the same level of disclosure,” she said.

“This deal is delivering from a shareholders’ perspective, one of the most generous we have seen in Australia this year. It’s what we would describe as a premium.”

Cooke Aquaculture. Picture: supplied

Dr Wright said Cooke had said little about its plans, so it was unclear what impact there may be on the Tasmanian environment and economy.

She said Tasmanian aquaculture companies had become part of the global race to secure food supply chains amid rising food prices.

“It’s almost like they have become victims of their own success, to become active targets of these large international companies,” she said.

“There’s been global interest in Australian seafood and Australian proteins.”

In an open letter to Premier Jeremy Rockliff published in interstate newspapers on Wednesday, the Global Salmon Farming Resistance called on the state government to force fin fish farmers out of coastal waters.

A range of North American groups used the ad to attack Cooke’s environmental and corporate record.

A testimony from Emma Helverson of the US Wild Fish Conservancy said:

“While operating in Washington state, Cooke Aquaculture Pacific habitually used litigation and legal threats to avoid accountability for violating environmental laws and to influence the decision-making process of legislators, government officials and members of the public. I hope Tasmania will not make the same mistake as Washington.”

Environmentalists prevent a large Tassal ship from releasing salmon into Long Bay on Tuesday morning.

Environment Minister Roger Jaensch said Cooke would have to comply with Tasmanian environmental laws.

“We welcome overseas investment. But we remind them and anybody else who does business in Tasmania and in the Tasmanian environment is bound by our environmental regulations, our independent EPA, and will be expected to do their part to comply and protect our environment from harm,” Mr Jaensch said.

“We have taken through the parliament just last week some amendments to our environmental legislation to provide for greater transparency, greater sharing of monitoring data, more independence for our EPA.”