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Huon Aquaculture (ASX:HUO) begins due diligence with “interested parties”

Agriculture
ASX:HUO
25 June 2021 08:36 (AEST)
Huon Aquaculture Group (ASX:HUO) -

Source: Huon Aquaculture Group

Huon Aquaculture (HUO) shares are trading in the green amid speculation it could be in for another corporate-level transaction days after selling off a $20 million stake to Twiggy Forrest.

Huon Aquaculture, which is regarded as Tasmania’s second-largest salmon producer, said it had initiated a strategic review to assess the potential for corporate-level transactions back in February.

The ASX-lister today announced it had engaged corporate finance firm Grant Samuel and Ashurst to facilitate due diligence by “select interested parties.”

The announcement comes days after iron-ore magnate Andrew “Twiggy” Forrest acquired a 7.33 per cent stake in HUO through his family investment arm, Tattarang.

Huon noted there was no certainty about whether engagement with interested parties would result in a binding transaction or whether there would be a decision or recommendation by the Huon board to pursue any transaction.

In terms of operational matters, the company said it had seen a recent steady increase in demand from the domestic wholesale market as businesses reopen and COVID lockdowns ease.

Huon Aquaculture shares closed up 7.81 per cent to trade at $2.90.

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