Peru's Copeinca Vulnerable to China Fishery Takeover - J.P. Morgan

Mar 15, 2013 (Dow Jones Commodities News Select via Comtex) --By Robert Kozak

Peru's Copeinca ASA, (COP.OS) the second biggest fishing company in the Andean nation, has a fragmented shareholder structure and is vulnerable to a takeover, J.P. Morgan Chase said.

China Fishery Group Ltd. (CIFHY) has launched a public offer for Copeinca's common shares, a bid worth 551 million, the bank said in a report late Thursday.

The largest shareholder, Dyer Coriat Holdings, is opposing the takeover, saying the offer is a lowball bid.

J.P. Morgan said Dyer Coriat has a 32.6% stake in Copeinca, followed by Ocean Harvest with 13.9%, Euroclear Bank with 11.3% and an investment fund held by the Dyer Coriat Investors with 5.96%.

" The remaining stakes are very fragmented with most investors holdings less than 1.4%. Therefore, technically a deal could go forward without the agreement of Dyer Coriat," the bank said.

J.P. Morgan says that China Fishery has already secured 41.5% in positive indications, such as pre-sold shares or binding agreements.

Peru's rich fishing grounds make it the world's largest producer of fishmeal, which is exported to China, Germany and a number of other nations. The fishmeal, used in part as a high-quality animal feed, is made mainly of anchovy.

Copeinca officials say their company is worth up to 1.1 billion, and said Thursday the company is looking at all options, including soliciting interest from potential alternative bidders.

It added that " interesting dialogues have already been established with potentially interested parties attracted by Copeinca's leading operational platform and market position."

Peru's Credibolsa SAB, which is handling the public share purchase offer, said in a published statement that the offer is open until April 15.

Copeinca said it " strongly advises shareholders to refrain from taking any action in respect of their shares in Copeinca which may be prejudicial to their interests."

Separately, South Korea's Dongwon Group has reportedly made an offer to purchase Peru's Pesquera Diamante, a leading fishing company.