China Fish

China Fish: Came a long way from its first voluntary offer for Copeinca, the group submitted its offer document for its NOK68.17/share offer (27% above initial offer) for the outstanding shares in Copeinca ASA. Offer period will start today and end 31 Jul. Completion of the deal will raise the group’s combined catch quota in north and central Peru from 6.2% to 16.9%, and from 11.7% to 14.7% in southern Peru. This will enhance China Fishery’s position as the largest fishmeal company in Peru and one of the world’s top anchovy suppliers. It will also reduce the group's dependence on its North Pacific contract supply business, which is subject to regulatory risks. On a proforma basis, the acquisition will boost China Fishery's sales by 52% to US$910m in 2012. However, this would take its net debt to US$1.06b giving a net gearing of 124% (without taking into account the financials of Copeinca).