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

(Black Press Media file photo)
Victoria police use bean bag round in arrest

Man arrested for assault with weapon, uttering threats

Test positivity rates in Greater Victoria from April 23 to 29. (BC CDC data)
Leaked data shows View Royal top of COVID-19 list for Greater Victoria

View Royal mayor says week was a blip for the township, not the norm

A member of the Downtown Victoria Business Association Clean Team works along Fort Street. The team will be working weekends from May through September, providing seven day a week coverage. (Photo courtesy DVBA)
Downtown Victoria cleanup service expanded for spring, summer

Clean Team members to patrol sidewalks seven days a week through September

This rendering shows the proposed warehouse for lands under the authority of the Victoria Airport Authority near a Sidney residential neighbourhood. (York Reality/Submitted).
Sidney warehouse proposal receives more than 40 public feedback comments

Sidney has until May 11 to submit comments to Victoria Airport Authority

Carolyn West plans to run each of the Victoria Goddess Runs this year, in support of Victoria Women’s Transition House Society. (Courtesy Carolyn West)
Runner tackles solo Goddess Run to raise funds for women, children fleeing violence

Women’s Transition House Society named official cause for Goddess Runs

A bullet hole is seen in the windshield of an RCMP vehicle approximately 4 km from Vancouver International Airport after a one person was killed during a shooting outside the international departures terminal at the airport, in Richmond, B.C., Sunday, May 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Homicide team IDs man in fatal YVR shooting as police grapple with spate of gang violence

Man, 20, charged in separate fatal shooting Burnaby over the weekend

The Canadian Forces Snowbirds are in the Comox Valley for their annual spring training. Photo by Erin Haluschak
Suspected bird strike on Snowbirds plane during training in Comox

Pilot followed protocols and landed the aircraft on the ground without any problems

BCIT. (Wikimedia Commons)
BCIT apologizes after employee’s ‘offensive and hurtful’ email leaked to Métis Nation

BCIT says employee’s conduct has been investigated and addressed

An adult male yellow-breasted chat is shown in this undatd photograph on lands protected in collaboration between the En’owkin Centre and Penticton Indian Band with support through ECCC. The rescue from near extinction for a little yellow bird hinges on the wild rose in British Columbia’s Okanagan Valley, a researcher says. THE CANADIAN PRESS/HO, A. Michael Bezener/ En’owkin Centre 2020 *MANDATORY CREDIT*
Rare yellow birds need wild roses to survive in British Columbia: researcher

The importance of local wild roses emerged over a nearly 20-year experiment

Alberni Valley Bulldogs forward comes away with the puck after a battle along the boards with Grizzlies defenceman Jake Veilleux. (ELENA RARDON / ALBERNI VALLEY NEWS)
BCHL: Victoria Grizzlies named Island Champions

Grizzlies edged Alberni Valley Bulldogs in back-to-back matches to claim title

RCMP officers search around rows of luggage carts as screens block off an area of the sidewalk after a shooting outside the international departures terminal at Vancouver International Airport, in Richmond, B.C., Sunday, May 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Police say gang conflict in Metro Vancouver may be behind shooting death at airport

Police said this generation of gangsters is taking things to new level and have no regard for community safety

RCMP are looking for information on an alleged shooting attempt near an elementary school in Smithers March 10. (Phil McLachlan/Capital News/Stock)
UPDATE: Man killed in brazen daylight shooting at Vancouver airport

Details about the police incident are still unknown

Pieces of nephrite jade are shown at a mine site in northwestern B.C. in July 2019. THE CANADIAN PRESS/HO-Tahltan Central Government MANDATORY CREDIT
Indigenous nation opposes jade mining in northwestern B.C.

B.C.’s Mines Act requires operators to prepare a plan to protect cultural heritage resources

The body of Brenda Ware, 35, was found along Highway 93 in Kootenay National Park on Thursday, May 6, 2021. (RCMP handout)
RCMP ask for tips after woman’s body found in Kootenay National Park

Brenda Ware was found along Highway 93 in the park, 54 kilometres north of the town of Radium

Most Read