Bloomberg News

Invermar Plunges in Santiago as Bid Trails Market Price

April 01, 2013

Invermar SA, Chile’s best-performing salmon farmer stock in the first quarter, plunged the most since August 2011 after saying it received an offer for a controlling stake in the company valued at half the current market price.

Invermar dropped 14 percent to 104 pesos at 12:41 p.m. in Santiago. Trading volume was 3.9 times the daily average of the past three months. Chile’s Ipsa index slipped 0.3 percent.

The salmon farmer, the smallest by market value in Chile, received on Jan. 29 a $20 million offer for a 54 percent stake from Canada’s Cooke Aquaculture Inc., according to a March 29 regulatory filing. The proposal valued the company at 13 U.S. cents per share, according to the filing. Invermar closed on March 28 at 120.84 pesos, or about 26 U.S. cents.

“The shares are falling because of the price offered,” Andres Galarce, an analyst at brokerage Euroamerica Corredores de Bolsa SA, said in a phone interview from Santiago. “It’s way below the current market price.”

Invermar’s shares had increased 75 percent in 2013 before today, after falling 60 percent in 2012.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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