Tassal shares are surging on takeover talks with the De Costi seafood business

Photo: Jeff J Mitchell/Getty Images

The Tasmania salmon producer Tassal is in takeover talks with De Costi, a privately-owned seafood supply business based in Sydney.

Tassal, which just released its first half results with profit up 34.8% to $30.3 million, confirmed it is in discussions. Revenue was up 12.3% to $150.95 million.

However, it says there’s no certainty a transaction will eventuate.

CEO Mark Ryan says Tassal has generated double-digit profit growth as well as further reduced gearing, while also substantially increasing dividends.

The interim dividend was increased by 27.3% to 7 cents per share, 50% franked.

Tassal shares are up 4.6% to $4.07.

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