Mainboard-listed Pacific Andes Resources Development (PARD), one of the leading global frozen fish suppliers with an integrated supply chain spanning industrial fishing, global sourcing and ocean transportation, says the group has signed a sale and purchase agreement today to acquire 19.76% of ASX-listed Tassal, a vertically integrated salmon grower, processor, seller and marketer, for A$51.7 million ($67 million).
Ng Joo Siang, Executive Director and Chairman, says: “As Australia’s largest producer and marketer of salmon with highly recognised brand names, Tassal is well-positioned as a clear market leader to benefit from the growing Asian demand, particularly in China and metropolitan South East Asia, for salmon. PARD is always on the look-out for opportunities to invest in high-quality resources that are limited in supply, yet enjoy a strong demand. Tassal is a perfect investment fit for the group. Seafood is an industry that the group is very familiar with, and the Australian farmed salmon industry is well-protected with high barriers to entry. The Australian Quarantine and Inspection Service (AQIS) import restrictions and the Tasmanian Government Biosecurity measures combined result in one of the world’s most controlled and healthy farmed salmon supplies.”
Since its establishment in 1986, Tasmania-based Tassal has grown along with the continuously rising demand for seafood. Led by rising population and income, increasing preference for a healthier diet and improvements in cold-chain supply system, the seafood industry looks set to continue this uptrend. With this investment, the group gains a platform that will offer PARD a deeper insight into a new seafood business that offers high growth potential due to favourable supply-demand dynamics.
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