Clearwater co-founder mum on potential suitor
Membertou rumoured to be involved in Canadian company’s bid
GRAND BANK, N.L. — Names of potential suitors for Clearwater Seafoods are popping up like celebrity partners in a supermarket tabloid.
But no one will say publicly who is interested — or deny it.
Monday, three days after Clearwater issued a news release to squelch a report naming those said to be involved in a sale, co-founder and director John Risley said he can't comment.
Risley told Saltwire that none of the directors of Clearwater would be able to speak as they are bound by Toronto Stock Exchange rules.
Clearwater announced in March it had begun a formal process to identify, review and evaluate strategic alternatives. The review is being led by a special committee of independent directors, chaired by Brendan Paddick, whose job is to solicit, consider and evaluate proposals.
In a news release at the time, the company said its options “may include, but are not limited to, a sale of all or a material portion of Clearwater's assets, either in one transaction or in a series of transactions, the outright sale of Clearwater, a merger or other transaction involving Clearwater and a third party, joint ventures, licensing arrangements, various financing alternatives or other significant transaction.”
On Friday, Undercurrent News, a U.K. media outlet that reports on seafood industry news and trends around the world, reported unnamed sources had divulged the names of the leading bidders for company assets.
According to Undercurrent News, the Canadian company Premium Brands Holdings, in collaboration with two First Nations groups from Atlantic Canada, was one of the bidders. The First Nations named were Membertou of Nova Scotia and Miawpukek of Conne River, N.L.
Membertou has already signed a deal with Clearwater to buy two of the company's lobster offshore licences. That deal, worth $25 million, was announced in September.
The trade publication reported that two other bidders for Clearwater assets are
Cooke Aquaculture of New Brunswick and the Ontario Teachers Pension Plan.
Joel Richardson, vice-president of public relations for Cooke, told Saltwire the company would not comment.
“We have a practice of not commenting on rumours about potential mergers or acquisitions,” he said.
The story did prompt Clearwater Seafoods to issue a news release Friday.
“In response to market rumours,” the release stated, “the company continues to advance the strategic review process with its financial advisors to identify, review
and evaluate a broad range of potential strategic alternatives available to it with a view to continuing to enhance shareholder value.”
Clearwater said, “The process is continuing in earnest and no timeline for its completion has been currently defined. There can be no assurance that any such strategic alternatives will ultimately lead to a transaction.”
As a general policy, the company added, Clearwater does not publicly comment on potential transactions unless and until a binding legal agreement has been signed.
The company also stated:
“All shareholders and prospective investors are encouraged to rely only on information provided by the Company in its ongoing disclosures.”
Clearwater was founded in 1976 by John Risley and thenbrother-in-law Colin MacDonald, both of whom are still directors of the company.
Clearwater trades on the Toronto Stock Exchange.
Over the past year, its share value has ranged from $2.83 to $6.80. The stock was at $6.85 per share in afternoon trading Monday, up by more than 10 per cent in the last week.