Yumbah Aquaculture makes merger proposal to Clean Seas Tuna

Clean Seas Seafood (CSS) reported to the Australian Stock Exchange earlier today that it had received a "non-binding, indicative and incomplete proposal" from Yumbah Aquaculture to merge with CSS.

Clean Seas is involved in the full cycle breeding, farming, processing and marketing of yellowtail kingfish in South Australia. Yumbah is an aquaculture company that delivers farmed shellfish from spat through to harvested products.

Yumbah proposed an acquisition of 100 per cent of CSS shares by way of a scheme of arrangement offering $0.14 cash per share with a scrip alternative in Yumbah.

Under the terms of the proposal, CSS shareholders would, as the default consideration, receive total cash consideration of $0.14 per share, or Yumbah scrip based on eligibility requirements.

The proposal’s cash consideration of $0.14 per share represents a premium of 52.2 per cent to the closing price of $0.092 on February 18.

CSS and Yumbah have entered into a process deed under which Yumbah has been granted until March 24 to undertake exclusive due diligence and negotiations on a binding SID.