SANTIAGO (Reuters) - Shares in Australis Seafoods AUS.SN jumped by nearly 30 percent on Monday after Chinese food service giant Joyvio said it would buy the Chilean salmon farmer in a $880 million deal.
Australis shares were up 29.37 percent at 81.5 pesos ($.121) at 10:56 local time (1356 GMT) on Santiago’s Stock Exchange .IPSA.
Joyvio, a subsidiary of Legend Holdings, said on Sunday it would buy all of the shares in the Chilean aquaculture company - one of Chile’s top salmon producers - at a price of $.128 per share.
The deal with Joyvio comes as several salmon producing companies in Chile have moved to consolidate in recent months as demand and prices for salmon have increased and Chilean operations recover from several years of devastating outbreaks of red tide and salmon-specific viruses.
In 2016, an outbreak of red tide in Chile killed millions of fish, devastating the world’s second biggest salmon exporter and resulting in losses upwards of $800 million.
Reporting by Dave Sherwood; Editing by Susan Thomas