A model of a giant lobster marks the headquarters of Clearwater Fine Foods Inc., in Halifax, Wednesday, Oct. 19, 2005. Clearwater Fine Foods is being sold to Premium Holdings and a group of Mi’kmaq First Nations. THE CANADIAN PRESS/Andrew Vaughan

A model of a giant lobster marks the headquarters of Clearwater Fine Foods Inc., in Halifax, Wednesday, Oct. 19, 2005. Clearwater Fine Foods is being sold to Premium Holdings and a group of Mi’kmaq First Nations. THE CANADIAN PRESS/Andrew Vaughan

Mi’kmaq First Nations joining with Premium Brands to buy Clearwater Seafoods for $1 B

Mi’kmaq expect to hold Clearwater’s Canadian fishing licences within a fully Mi’kmaq-owned partnership

Premium Brands Holdings Corp. and a group of Mi’kmaq First Nations are buying Clearwater Seafoods Inc. for $1 billion, including debt.

The deal announced Monday would be the largest investment in the seafood industry by a Canadian Indigenous group and comes eight months after Halifax-based Clearwater said it was exploring a possible sale.

Clearwater shareholders would receive $8.25 per share which represents a 60.2 per cent premium to the average volume-weighted average price for the 20-day period preceding the strategic review announcement on March 5.

The transaction has received unanimous approval of Clearwater’s board and is subject to approval by Clearwater shareholders in January.

The Mi’kmaq First Nations coalition, led by the Membertou First Nation, and Premium holdings will each acquire half ownership of Atlantic Canada’s largest fishing company that was founded in 1976.

The Mi’kmaq expect to hold Clearwater’s Canadian fishing licences within a fully Mi’kmaq-owned partnership.

“This is a transformational opportunity for the Mi’kmaq to become significant participants in the commercial fishery through the investment in existing infrastructure, management expertise, and a global market presence.” stated Membertou First Nation Chief Terry Paul.

Paqtnkek, Pictou Landing, Potlotek, Sipekne’katik, and We’koqma’q have confirmed their intention to participate with Membertou and Miawpukek in the investment.

“I am very pleased to recommend this transaction. It represents great value for shareholders, leverages the expertise within the company while advancing reconciliation in Canada,” said Clearwater chairman Colin MacDonald.

“I am confident that this transaction will enhance the culture of diversity and sustainable seafood excellence that exists at Clearwater.”

Each of Clearwater’s directors, the CEO and chief financial officer, which control 63.9 per cent of outstanding shares, have entered into agreements to vote in favour of the transaction.

Premium Brands said it will raise $250 million of new equity capital from a $200-million bought deal public offering and a $50-million concurrent private placement with CPP Investments.

READ MORE: Mi’kmaq band finds buyer for portion of lobster catch after alleged blacklisting

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

fishingIndigenous

Just Posted

Doses of the Pfizer coronavirus vaccine. (AP Photo/Ron Harris)
Fraser Health adds 4 first-come-first-serve vaccination clinics to Surrey

First 1,000 people to show up to receive vaccine

Surrey RCMP in the 4900-block of 148th Street, a short road just off of King George Boulevard, on May 15, 2021 after a male was allegedly assaulted with a “pipe-like” weapon that morning. (Photo: Shane MacKichan)
Surrey RCMP investigating after person reportedly injured with ‘pipe-like’ weapon

Police investigating incident in the 4900-block of 148th Street

Surrey Eagles head coach Cam Keith has signed a three-year contract extension with the team. (Garrett James photo)
Surrey Eagles head coach Cam Keith inks 3-year extension with BCHL club

Keith led team to a 17-2-1 record in BCHL’s 20-game ‘pod’ season

A COVID-19 warning sign on the Surrey-Langley border. As cases rise, but deaths fall lower, is it time to rethink our pandemic response? (Photo: Malin Jordan)
RETHINK: Are we following the right tack with our COVID response?

Cases are up, deaths are down; are renewed restrictions justified, or is it time to ease up?

Conservation Service Officer Kyle Bueckert holds a gold eagle that was revived from acute rodent poisoning Monday, May 12. Photo: Submitted
‘Obviously, he’s a fighter’: Golden eagle, recovered from poisoning, back in Kootenay wild

CSO Kyle Bueckert released the eagle into the wild Thursday, May 13

Capt. Jenn Casey died in a crash just outside of Kamloops, B.C., on May 17, 2020. (CF Snowbirds)
Snowbirds to honour Capt. Casey, who died in B.C. crash, in 2021 tour

Tour will kick off in Ontario in June before heading west

A pedestrian wearing a mask to curb the spread of COVID-19 is bundled up for the cold weather as snow falls in downtown Vancouver on Saturday, February 13, 2021.THE CANADIAN PRESS/Darryl Dyck
Snow possible in mountain passes as cold front hits southern B.C.

Much of B.C.’s southern interior will see temperatures plunge from highs of 30 C reached over the weekend

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. Wildfire Services shows a fire on Chehalis Forest Service Road as of Sunday, May 16, 2021. (BC Fire Services)
Wildfire near Harrison Mills grows to 3 hectares, BC Fire Service on site

Resident near wildfire: ‘I pray that the Creator brings rain as soon as possible’

A vial of AstraZeneca vaccine is seen at a mass COVID-19 vaccination clinic in Calgary, Alta., Thursday, April 22, 2021. Dr. Ben Chan remembers hearing the preliminary reports back in March of blood clots appearing in a handful of European recipients of the Oxford-AstraZeneca COVID-19 vaccine. THE CANADIAN PRESS/Jeff McIntosh
Science on COVID, VITT constantly changing: A look at how doctors keep up

While VITT can represent challenges as a novel disorder, blood clots themselves are not new

Police tape is shown in Toronto Tuesday, May 2, 2017. Statistics Canada says the country's crime rate ticked up again in 2018, for a fourth year in a row, though it was still lower than it was a decade ago. THE CANADIAN PRESS/Graeme Roy
CRIME STOPPERS: ‘Most wanted’ for the week of May 16

Crime Stoppers’ weekly list based on information provided by police investigators

Poached trees that were taken recently on Vancouver Island in the Mount Prevost area near Cowichan, B.C. are shown on Sunday, May 10, 2021. Big trees, small trees, dead trees, softwoods and hardwoods have all become valuable targets of tree poachers in British Columbia as timber prices hit record levels. THE CANADIAN PRESS/Jen Osborne.
Tree poaching from public forests increasing in B.C. as lumber hits record prices

Prices for B.C. softwood lumber reached $1,600 for 1,000 board feet compared with about $300 a year ago

The warm weather means time for a camping trip, or at least an excursion into nature. How much do you know about camps and camping-related facts? (John Arendt - Summerland Review)
QUIZ: Are you ready to go camping?

How many camp and camping-related questions can you answer?

Most Read