(Yicai Global) March 1 -- Joyvio Agriculture Development plans to buy most of Chile's Austral Seafoods, a leading local salmon farming firm.>/n/n/n/n/nJoyvio and Austral Seafoods' major stockholders yesterday inked the share purchase agreement, under which Joyvio will acquire 95 to 100 percent of the latter's outstanding shares for cash.
News of th acquition lifted Joyvio's stock [SHE:300268] to CNY15.05 (USD2.25) by 10.30 a.m. th morning, up 5.17 percent, though it lost buoyancy in the afternoon to close only 2.03 percent up at CNY14.60.
The deal price will be adjusted according to the Chilean salmon farm's business performance and other conditions, per the agreement, but rests on a base figure of USD880 million, which all of Austral' equity value, per a statement Joyvio released.
Formed in 2007 and based in Santiago, Austral Seafoods produced 64,000 tons of premium salmon in 2017 -- 9 percent to the nation's total yield of the oily fh -- and earned annual revenue of USD400 million and net profit of USD73.4 million, per the statement.
Salmon has very high business value among global seafoods and finds great favor among Chinese consumers. Joyvio will take over the upstream, high-quality and rare salmon resources through th buyout to rapidly rae the brand and market influence of its seafood business, the Hunan province-based seller of farm produce noted.
Joyvio a modern agriculture company unit of Beijing-based information and technology giant Legend Holdings. It has set up a global industrial platforms in drinks, fruit, animal protein, branded packaged foods and other victuals.
Editor: Ben Armour