Tassal went into receivership this June, after its major creditor the ANZ Bank, required repayment of a $30 million loan.  The collapse came after two consecutive hot summers destroying fish stocks and caused Tassal to record its first loss in 10 years. 

Tassal earned revenue of $85 million in 2001 and amended a profit forecast for 2001-02 to a loss of $5.5 million.  Administrators, Mr Mark Ryan and Mr Mark Mentha, of Korda Mentha and Collegues are believed to be closely investigating a bid for Tassal in an attempt to consolidate the Tasmania’s fractured $160 million salmon industry, which Tassal being one of the regions biggest producers.  The company’s receivers have set a sale price at an estimated $45 million. 

Sources said Nutreco could acquire Tassal for almost 6 times earnings before tax, depreciation and amortisation, this would equate to $15 million based on Tassal’s EBITDA of $2.5 million in 2001, plus the $30 million debt would make the final price around $45 million. 

Mr Mentha confirmed that Nutreco is Tassal’s single largest shareholder.  Mr Mentha said, “Nutreco is a large shareholder.  They have been out to see, among other things, whether they could be interested in purchasing Tassal.  From a strategic point of view it makes sense . . . and they definitely haven’t said no”. 

Tassal would fit in with Nutreco’s worldwide stock feeding operations.  Mr Mentha said any resolution of the company’s position could take up to a year, and a possible merger with another Tasmanian salmon producer was still on the cards.  He said, “That is always a possibility . . . there are a number of initiatives that we’re looking at”. 

Mr Ryan was confident Tassal would emerge a stronger company after coming out of receivership as all players in the state’s salmon industry were committed to reform.  Shares in Tassal which traded as high as $1.50 in 1999, last sold on the ASEX for 26 cents.  Tassal has salmon farms at Port Arthur, Nubeena and Dover, all in Tasmania.