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Canada’s Clearwater Seafoods Income Fund has said that it has implemented a unit holder rights plan designed to ensure that all of the Fund's unit holders are treated fairly in the event of a take-over bid.
The company, which is a major producer and supplier of lobster and other shellfish, has already received an unsolicited bid from Cooke Aquaculture of New Brunswick, which has indicated that it intends to press ahead with its buyout plans, despite strong opposition from within Clearwater.
It also wants to ensure that sufficient time and rights are available for the Fund's board of trustees and all Unit holders to fully evaluate any offer and pursue alternatives to maximize Unitholder value.
Cooke already owns about 20 per cent of Clearwater’s fund units and wants to buy the remainder and has said it supports Clearwater’s defence plan.
"We are pleased with the unit holder rights plan. It prevents insiders from buying more shares to block a potential bid," said Cooke vice president Nell Halse.
Clearwater Seafood has a fleet of around 20 fishing vessels and is expanding its activities into other parts of the world including Europe and Asia.
Clearwater said in a statement yesterday that its trustees are continuing to evaluate the unsolicited and non-binding proposal from Cooke Aquaculture, which would have no effect on Clearwater's plans to convert to a corporate structure from an income fund by the end of the year.
Clearwater’s two founders, John Risley and Colin MacDonald, have strongly indicated that they do not want to sell.
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