New Zealand King Salmon dismisses takeover speculation

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Salmon farmer New Zealand King Salmon has denied media reports that an investment bank has been appointed to gauge buyer interest for the company. 

The Australian reported earlier this week that there are multiple interested players within the industry that are interested in purchasing the company, seeing it as an “attractive bolt-on acquisition.”

In an announcement on the local stock exchange, New Zealand King Salmon categorically denied the reports, confirming that “it has not been approached” and “is not in discussions with any parties, regarding a potential takeover transaction.”

“New Zealand King Salmon remains in compliance with its NZX continuous disclosure obligations and will continue to inform the market in accordance with them,” the company added.

Read also: New Zealand King Salmon issues climate change warning

The media speculation about New Zealand King Salmon comes after meat processing company JBS purchased Huon Aquaculture and Cooke Aquaculture is looking to acquire Tassal Tasmanian Salmon.

Back in April, New Zealand King Salmon reported a full year loss of NZD $73 million (€46 million) after the company suffered from three challenges that hit its finances.

“Ongoing supply chain disruptions, soaring freight charges and mortalities continue to impact our business. Our hospitality customers also continue to be affected by lockdowns and social disruptions,” Rosewarne said at the time, discussing the company’s finances.

Read also: Activists demand animal welfare investigation into New Zealand King Salmon’s mortality rates

Warming temperatures have hit New Zealand King Salmon particularly hard, with the company reporting a mass mortality event of up to 42 percent in warm water ares where fish weren’t towed to cooler zones.

The company has the unfortunate moniker of being the worst performer on the New Zealand stock exchange, having seen its stock price drop by over 70 percent to a mere NZD $0.19 (€0.11) over the past 12 months.