Huon Aquaculture’s strategic review extended

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Auctioneer Grant Samuel moves deadline into next week.

Financial Review reports that the Australian salmon farmer Huon Aquaculture’s strategic review has been extended.

Last week it was reported that the Brazilian giant JBS was believed to making efforts to move in on Huon Aquaculture.

The auction deadline has been moved into next week.

“Prolonged auctions usually mean one of two things; business circumstances have changed, or buyer interest is below vendor price expectations and bidders are asked to sharpen their pencils,” wrote the publication.

“It’s also left more time for brokers to talk to investors about a potential Plan B: a discounted equity recap. Fundies reckon Bell Potter is in the frame,” it added.

The salmon farmer has a market capitalisation of AUD 302.1 million (EUR 188 million).

Huon said that it continues to trade in line with previous guidance provided to the market including an expected harvest of around 35,000 tonnes for full year. Operating earnings (EBITDA) is likely to be within previous guidance of EUR 9.5 to EUR 12.5 million.