Agricultural resources investment funds manager Laguna Bay Group has made a 20-cents-a-share cash bid for South Australia oyster producer Angel Seafood (ASX: AS1).
The offer values the Coffin Bay business at $32.3 million.
Queensland-based Laguna Bay and associates already hold almost 20% of Angel Seafood’s shares.
Announcing the indicative, non-binding and conditional offer, Angel Seafood said it represented a 60% premium to its 12.5 cents-a-share closing price on Friday, 17 December.
After the announcement on Monday, 20 December, the share price increased to close at 18 cents.
Angel Seafood said Laguna Bay had indicated it had made its offer based on key assumptions including a strong preference for Angel Seafood founder and chief executive Isaac Halman and associated entities to retain a significant holding.
The company said that after careful consideration and consultation with advisers it had decided it would be in the best interests of shareholders to further engage with Laguna Bay. It had granted the fund manager exclusive due diligence until 10 February to put forward a binding offer. A break fee capped at $200,000 would apply in certain circumstances were Angel Seafood to end engagement during the exclusivity period.
Angel Seafood is an organically certified grower of Pacific oysters. The company primarily sells into the domestic market but believes exports offer a long-term growth opportunity.
Laguna Bay’s offer follows Angel Seafood being forced to cease harvesting in November following an oyster disease outbreak. The company was cleared to re-start sales from 14 December.