- Tassal Group (TGR) has acquired Mid Farm, an 800-hectare lot neighbouring the company's existing Proserpine prawn farm and Billy Creek property in Northern Queensland
- TGR says the conveniently placed acquisition will enable the company to successfully integrate its farm holdings
- This, in turn, is set to underpin future prawn production in the area
- Meanwhile, the seafood seller has divested all surplus land at the Exmoor Station, retaining economical parcels for future farming development
- On completion, the transactions will be net cash positive for FY21, with the funds set to finance the Mid Farm and Billy Creek purchases
- Tassal Group shares are up 0.27 per cent, trading at $3.66 each
Tassal Group (TGR) has acquired Mid Farm, an 800-hectare lot neighbouring the company's existing Proserpine prawn farm and Billy Creek property in Northern Queensland.
Headquartered in Tasmania, Tassal produces and sells premium salmon, prawns and seafood products within Australia and internationally.
TGR says the acquisition will enable it to successfully integrate the company's farm holdings, underpinning future prawn production in the area, which it now calls the Proserpine farming precinct.
Specifically, Mid Farm's position between the Proserpine and Billy Creek properties lends itself to further pond production capacity, as well as increased operational efficiencies and best practice biosecurity measures.
Tassal Group Managing Director and CEO Mark Ryan said the acquisition could potentially improve operations substantially for the whole Proserpine precinct.
"The completion of these property acquisitions provides the foundation for Tassal's strategic platform to deliver 20,000 tonnes of annual prawn production," he said.
Meanwhile, the seafood seller has also divested all surplus land at the Exmoor Station in Northern Queensland, retaining what it considers the most productive and economical parcels for future farming development.
On completion, these transactions will become net cash positive for the financial year 2021, with the funds set to finance TGR's Billy Creek and Mid Farm purchases.
On the market this afternoon, Tassal shares are marginally higher by 0.27 per cent, trading at $3.66 each at 4:35 pm AEST.