New Zealand King Salmon (NZKS) has shot down speculation that the company is being put up for sale.
New Zealand King Salmon has been under pressure with about 73 percent wiped of its share price in the past year. Photo: Supplied
The Australian reported yesterday that an investment bank had been appointed to gauge buyer interest for the company.
It reported that major industry players were interested, as the company was viewed as an "attractive bolt-on acquisition".
But NZKS hit back against the story in an announcement to the local stock exchange today.
"NZKS confirms that it has not been approached, and is not in discussions with any parties, regarding a potential takeover transaction," it said.
"New Zealand King Salmon remains in compliance with its NZX continuous disclosure obligations and will continue to inform the market in accordance with them."
The Australian media report said the interest follows a flurry of takeover activity in the salmon industry across the ditch.
The Brazilian meat processing giant JBS recently purchased Huon Aquaculture and Canadian industry heavyweight Cooke Aquaculture was in a tussle to acquire Tassal Tasmanian Salmon.
Earlier this week, NZKS directors and executives apologised for poor financial performance in the past year at its annual shareholders' meeting.
It posted a $73 million full-year loss and cut about a 100 or so jobs, as warm waters resulted in higher fish deaths at its Marlborough Sounds farm.
The company's bottom line was also hammered by Covid-19 and supply chain disruptions.
That led to a heavily discounted share issue to raise extra capital to reinforce its finances.
About 73 percent had been wiped off its share price in the past year, which was now trading at 19.5 cents per share.
NZKS major shareholders include the Malaysian-based Tiong family, which control a near 40 percent stake, China Resources and the New Zealand Super Fund.
