New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>SAN provides investors exposure to marine property rights and has a competitive moat by holding ~20% of NZ's annual catch entitlements</li><li>Downside support appears robust, historically speaking</li><li>Execution risk of ambitious EBIT target range</li></ul>

SAN provides investors exposure to marine property rights and has a competitive moat by holding ~20% of NZ's annual catch entitlementsDownside support appears robust, historically speakingExecution risk of ambitious EBIT target range

Sanford: Fishing for Growth but Catching Value; OUTPERFORM

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tassal-group-ltd" target="_blank" data-smartkarma-citation="entities:16234:1" rel="noopener">Tassal (TGR AU)</a> entered a scheme implementation deed with Cooke at A$5.23 per share, a 48.6% premium to the undisturbed price of A$3.52.</li>
<li>The offer price is an all-time share price high. The scheme is not subject to due diligence or a financing condition. Cooke also noted that it had received FIRB approval.</li>
<li>This is a done deal. At last close and for year-end payment, the gross and annualised spread to the offer is 1.8% and 4.6%, respectively.</li>
</ul>



Tassal (TGR AU) entered a scheme implementation deed with Cooke at A$5.23 per share, a 48.6% premium to the undisturbed price of A$3.52.
The offer price is an all-time share price high. The scheme is not subject to due diligence or a financing condition. Cooke also noted that it had received FIRB approval.
This is a done deal. At last close and for year-end payment, the gross and annualised spread to the offer is 1.8% and 4.6%, respectively.


<ul><li>Wildcatch: prices +8%, volumes +17% on the prior corresponding period (3Q21) as strong volumes were achieved despite tight crew availability (due to COVID)</li><li>Mussels: prices +7%, volumes +8%. Prices continue to recover in line with our expectations around SAN’s lagged fixed price contracts</li><li>Salmon: prices +23%, volumes -17%, prices have more than offset the fall in sales volumes</li></ul>

Wildcatch: prices +8%, volumes +17% on the prior corresponding period (3Q21) as strong volumes were achieved despite tight crew availability (due to COVID)Mussels: prices +7%, volumes +8%. Prices continue to recover in line with our expectations around SAN’s lagged fixed price contractsSalmon: prices +23%, volumes -17%, prices have more than offset the fall in sales volumes

<ul>
<li>On 19 July, Cooke, the spurned suitor, increased its stake in <a href="https://www.smartkarma.com/entities/tassal-group-ltd" target="_blank" data-smartkarma-citation="entities:16234:1" rel="noopener">Tassal (TGR AU)</a> to 10.49%. The average price to build the 10.49% stake is A$4.14 per share. </li>
<li>Cooke also hired Phil Wiese, the former CEO of <a href="https://www.smartkarma.com/entities/huon-aquaculture-group-ltd" target="_blank" data-smartkarma-citation="entities:12348:1" rel="noopener">Huon Aquaculture (HUO AU)</a>, as a MD in Canada. Mr Wiese is well qualified to run Tassal should Cooke acquire it. </li>
<li>With shareholders happy to sell to Cooke despite the Board’s assertions that the previous bid undervalued Tassal, a new offer will force the Board to engage.</li>
</ul>


On 19 July, Cooke, the spurned suitor, increased its stake in Tassal (TGR AU) to 10.49%. The average price to build the 10.49% stake is A$4.14 per share. 
Cooke also hired Phil Wiese, the former CEO of Huon Aquaculture (HUO AU), as a MD in Canada. Mr Wiese is well qualified to run Tassal should Cooke acquire it. 
With shareholders happy to sell to Cooke despite the Board’s assertions that the previous bid undervalued Tassal, a new offer will force the Board to engage.


Tassal: Cooke Increases Its Stake to 10.49%

<ul>
<li>On 1 July, Cooke, the spurned suitor, disclosed that it further increased its stake from 5.40% to 7.60% at an average price of A$4.59 per share. </li>
<li>The <a href="https://www.smartkarma.com/entities/tassal-group-ltd" target="_blank" data-smartkarma-citation="entities:16234:1" rel="noopener">Tassal (TGR AU)</a> Board decided not to engage with Cooke as its third offer of A$4.85 per share did not reflect the fundamental value of the business. </li>
<li>Cooke's recent actions suggest that it will not be easily deterred. We think that it is likely that Cooke returns with another offer which will force the Board to engage.</li>
</ul>


On 1 July, Cooke, the spurned suitor, disclosed that it further increased its stake from 5.40% to 7.60% at an average price of A$4.59 per share. 
The Tassal (TGR AU) Board decided not to engage with Cooke as its third offer of A$4.85 per share did not reflect the fundamental value of the business. 
Cooke's recent actions suggest that it will not be easily deterred. We think that it is likely that Cooke returns with another offer which will force the Board to engage.


Tassal: Cooke Remains a Determined Suitor

New Zealand

Sanford Limited owns and manages deepwater and inshore fisheries throughout New Zealand waters.  The Company also operates cool-storage, ship-building, engineering and aquaculture businesses.  The Company exports seafood throughout the world.  The Company's seafood products include orange roughy, squid, hoki, tuna, mussels and salmon.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sanford Limited (SAN NZ)

Sanford: Fishing for Growth but Catching Value; OUTPERFORM

SAN provides investors exposure to marine property rights and has a competitive moat by holding ~20% of NZ's annual catch entitlements

Forsyth Barr

Tassal Recommends Cooke’s A$5.23 Offer

This is a done deal. At last close and for year-end payment, the gross and annualised spread to the offer is 1.8% and 4.6%, respectively.

Arun George

Sanford (SAN): 3Q22 Trading Update

Sanford’s (SAN) 3Q22 update highlights strong price recovery as the key driver of total third quarter revenue of NZ$121m (+14% on 3Q22)

Forsyth Barr

Tassal: Cooke Increases Its Stake to 10.49%

Cooke has increased its stake in Tassal to 10.49%. With shareholders happy to sell despite the Board’s assertions that Cooke's bid undervalued...

Arun George

Tassal: Cooke Remains a Determined Suitor

Shares are trading in line with the rejected offer price. We think that it is likely that Cooke returns with another offer which will force the...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)