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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Armstrong’s Jesse Crowe, shown at the home of golf, St. Andrew’s in Scotland, has been named the Royal York Golf Course’s director of golf operations. (Facebook photo)
Armstrong golf pro soars to home course position

Jesse Crowe becomes director of golf operations at Royal York Golf Course

A nurse performs a test on a patient at a drive-in COVID-19 clinic in Montreal, on Wednesday, October 21, 2020. (THE CANADIAN PRESS/Paul Chiasson)
30 new COVID-19 cases, five more deaths in Interior Health

This brings the total number of cases to 7,271 since testing began

Interior Health officially declared a COVID-19 outbreak at Creekside Landing in Vernon on Jan. 3, which was followed by the first death from the virus 10 days later. (Kaigo photo)
Despite additional death, COVID outbreak over at Vernon care home

Creekside Landing cleared of coronavirus, despite additional loss in last day

Ranchero Deep Creek firefighters respond to a blaze involving two adjacent structures at a property off of Deep Creek Road on Sunday, Feb. 21. The buildings were believed to have been used as part of a cannabis growing operation, and RCMP are investigating. (Sean Coubrough/CSRD photo)
Ranchero Deep Creek firefighters respond to a blaze involving two adjacent structures at a property off of Deep Creek Road on Sunday, Feb. 21. The buildings were believed to have been used as part of a cannabis growing operation, and RCMP are investigating. (Sean Coubrough/CSRD photo)
Shuswap firefighters responding to structure blaze find cannabis grow operation

RCMP investigating, attempting to track down owner of property

Two North Okanagan-Shuswap rural communities, including Lumby, will receive B.C. government grants to support new jobs and economic opportunities to help them recover from the impacts of COVID-19. (Black Press file photo)
North Okanagan-Shuswap communities collect government grants

Lumby and Blind Bay to benefit to help recover from economic impact of COVID-19

Dr. Bonnie Henry talk about the next steps in B.C.'s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
456 new COVID-19 cases in B.C., 2 deaths

Since January 2020, 78,278 have tested positive for the novel coronavirus in B.C.

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. (THE CANADIAN PRESS/Nathan Denette)
Vaccinating essential workers before seniors in B.C. could save lives: experts

A new study says the switch could also save up to $230 million in provincial health-care costs

The late Michael Gregory, 57, is accused of sexually exploiting six junior high students between 1999 and 2005. (Pixabay)
Former Alberta teacher accused of sexually assaulting students found dead in B.C.

Mounties say Michael Gregory’s death has been deemed ‘non-suspicious’

According to a new poll, a majority of Canadians want to see illicit drugs decriminalized. (THE ASSOCIATED PRESS)
Majority of Canadians think it’s high time to decriminalize illicit drugs: poll

More than two-times the B.C. residents know someone who died from an overdose compared to rest of Canada

(Stock photo)
EDITORIAL: The freedom to read

Books have been challenged many times in the past

The dam at Thirsk Lake, west of Summerland, was expanded in 2007. A crack has now been discovered where the old and new portions of the dam meet. (Summerland Review file photo)
Crack at Thirsk Dam to be examined

Reservoir west of Summerland was expanded in 2007

(Black Press Media file photo)
B.C. residents can reserve provincial camp sites starting March 8

B.C. residents get priority access to camping reservations in province

The Penticton Speedway has been sold but the investment group who bought it is planning to create an enhanced racetrack and racing experience. (File photo)
Penticton Speedway sold and will remain a racetrack

Investment group that includes founder of Area 27 intends to buy the Speedway

Most Read