Winners and Losers: Takeovers abound for fish and pharma
Clean Seas and Mayne Pharma both rose on takeover news this week, with the latter agreeing to be bought at a $672 million valuation.
Abalone producer Yumbah lobbed an offer to acquire Royal Park-based Clean Seas on Wednesday last week, sending the Adelaide firm’s stock up by 54 per cent over the trading days.
The non-binding, indicative and incomplete proposal to merge with CSS would see Yumbah acquire 100 per cent of the company’s shares via a 14 cent per share offer, or a stock swap should shareholders wish to remain owners of the merged company.
Clean Seas is a specialist in Yellowtail Kingfish, which would add to Yumbah’s portfolio of shellfish, oysters, mussels, aquafeed and oyster spat.
The deal looks likely to go through too, as the largest shareholder of both Yumbah and Clean Seas is Anthony Hall. He is also a director of Yumbah.
The deal represents a 52.2 per cent premium for CSS shareholders as of 18 February’s share price.
Meanwhile, the number two Winner for the week Mayne Pharma also spiked on takeover news.
The company last week agreed to $672 million takeover from US-based Cosette Pharmaceuticals.
The company’s board unanimously recommended shareholders vote in favour of the scheme implementation deed with Cosette, which specialises in women’s health and dermatology.
“We are pleased that Cosette has recognised significant value in Mayne Pharma, particularly in our women’s health and dermatology businesses, and the offer provides shareholders with the opportunity to receive cash value at a significant premium,” Mayne Pharma chair Frank Condella said.
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Otto Energy, Papyrus and Petratherm rounded out the Winners, with the latter making yet another titanium discovery at Muckanippie.
There was little news from the Losers, with the leader in that list – Whitebark – sinking on a placement hitting the market on Monday.
The full list of Winners and Losers for the week ended 21 February:
Data via Baker Young Limited analysts.
