Jun 7, 2011
Australis acquires organisations to achieve more aquaculture concessions
As Australis Seafood undergoes preparation to open in the Santiago Stock Exchange on June 9, it declared its purchase of Mitrahues and Galway.
According to general manager of the salmon company, Andrew Saint Jean, the acquisition of both companies will facilitate the increase in the number of marine area concessions for salmon farming, which are at 48 areas currently.
Presently, the two companies account for about 90 applications for new areas for aquaculture, according to the media.
Both acquisitions are performed within the planned growth framework by Australis to achieve a production of around 80,000 tonnes of salmon within five years.
The total investment is estimated at US$274 million. Part of this amount is expected to be funded with US$70 million raised at the opening of 12.77% of the property in the Exchange.
Also, company businessmen are evaluating the possibility of purchasing two new fish farms in order to have 12 of them.
"We are seeing two alternative fish farms by 2012. At least these two would preferably be located in Region XI," said Saint Jean.
He added, "We are always ready to the possibility of expanding towards another country, but there has been nothing concrete so far."
Meanwhile, a broker said that she had analysed the financial records of the placement of first issued shares in Australis Seafood.
"On this basis, we will develop a method of valuation by DCF, taking into consideration the relevant real discount rates given the company's current risk and conservative assumptions on the growth of flows in the long term," she explained.
"Considering that the company is medium in size in its industry, with competitors of higher volume and with ambitious investment plans, we suggest the investor to invest at a discount price target of 15%. For this reason, we recommend the placement at a price not exceeding US$0.40," she concluded.
