Meanwhile, more M&A activity in the salmon industry. Mowi has...

Meanwhile, more M&A activity in the salmon industry. Mowi has put in a bid for NTS - whom have artic licenses, so that definitely seems to be a trend for the big guys over in Norway to be buying up the limited arctic licenses.

https://www.intrafish.com/finance/salmon-farmer-mowi-makes-1-6-billion-bid-for-aquaculture-giant-nts/2-1-1151029

Taking a quick look at the numbers: NTS production is 84,000t and Tassal is 41,000t (close enough to 50%). The price they are paying in AUD is around $2.25bn, so essentially that's worth $1.125bn for Tassal including debt. At today's enterprise value for Tassal, you're essentially getting the prawns for free.

But that's not a great way to look at it.. because maybe NTS has much lower cost of production, or less debt, etc. So let's just look at the transaction price relative to the EBITDA contributions. NTS is trading at around 18x EV/EBITDA, or ~20x including the 18% premium Mowi is willing to pay. Tassal is trading at ~11x, the main difference being that NTS is loaded with a lot more debt relative to Tassal.

Just merely confirms what Grant Thornton said in the Huon valuation - Tassal is remarkably cheap on a local and international basis.