Norwegian seafood farming company Cermaq’s board of directors has unanimously voted to reject a takeover bid by rival Marine Harvest, and the board is urging shareholders to do the same.
Marine Harvest made the bid in April, with the condition that Cermaq first abandon its own bid to buy out Peruvian fishmeal and fish oil producer Copeinca.
Cermaq’s shareholders voted down the buyout, satisfying Marine Harvest’s condition, but after considering the offer, Cermaq’s board said a Marine Harvest buyout doesn’t match what the company is worth.
“The board considers this offer to be significantly below the underlying value of Cermaq's operations and market positions,” the board wrote.
The board indicated an interest in a merger or buyout from Marine Harvest, but not under the current offer conditions. The board indicated it was soliciting bids from other parties, but declined to offer details, indicating only that it “has made good progress” in discussions with other parties about selling some or all of the company’s assets.
“The board of Cermaq therefore strongly encourages the company's shareholders to refrain from a final evaluation of the offer from Marine Harvest until such clarification of alternative transactions is presented,” the board wrote.
