Wednesday, November 9, 2011


New Acquisitions in Peru

China Fishery’s fishing quota further increase to 6.21% in North Peru and 11.72% in South Peru.
Assets of the two Peruvian fishing companies include two fishing vessels and one fishmeal processing plant.


My Thots....

The key word here is ITQ, Individual Transferable Quotas.
Ownership of the ITQs provide exclusive rights to a portion of the TAC ( Total Allowable Catch) in the respective fishery, every year.
As prices of fish rise each year due to inflation and increasing demand from West Africa and aquaculture needs, the ITQs  are expected to rise in value.

For more on ITQs,

1 comment:

qiaofeng said...

Management has revealed that the acquisitions were made at 6.5x EV/EBITDA, compared to CFG which is trading at 7.9x FY10 EV/EBITDA.

Its share of North Peru TAC will increase by 0.16ppt to 6.21% and share of South Peru’s by 0.81ppt to 11.72%, thereby increasing CFG’s total TAC for Peru by 4%.

"Wisdom is purified by virtue and virtue is purified by wisdom. Where one is, so is the other."