Ann: Tassal 1H22 results presentation, page-19

The value of HUO in JBS hands is potentially much greater than in others hands. i.e. JBS can extract synergies in their massive production/distribution chains (plus access to cheap capital) that HUO doesn't have on its own. TGR has deCosti, for example, so that value can't be improved much by an industry player.

HUO was in trouble and in need of a big brother to survive, so Benders were happy to do a deal.If JBS can bring HUO production/revenue/costs back up to standard then it's worth a lot more than what they paid. Plus they probably see the duopoly that is Tassie salmon farming (good for TGR down the track also). Those farming leases get incrementally more valuable once people realise you can't just keep expanding the industry.

I reckon they'll strip heaps of costs out, use their market power to lift wholesale prices and generate returns the Benders only dreamt of. Will be good for TGR but might take a while to manifest.

I agree on unfranked dividends but I guess they have to pay something to be a yield play for investors. I'd like lower debt too.A little disappointed with the result. It was good but no surprises that would change the marginal investors' mind. You can see that in the brokers earnings forecasts...they changed bugger all. If tech/growth runs again I fear stocks like this will get sold off. The story needs some zing.