Clearwater Seafoods: Take the Deal, Says Beacon

Beacon Securities advised Clearwater Seafoods (CWFOF.PK)[TSE:CLR.UN] unitholders to vote in favor of the all-cash offer put forward by an acquisition consortium, in light of the ongoing difficulties plaguing the fishing industry.

Analyst Michael Mills in a note to clients recommended investors accept the offer of C$4.50 per unit made by the CS Acquisition Limited Partnership, a Consortium led by Clearwater Fine Foods. "Based on the recent poor operating results and ongoing challenges related to fuel costs and foreign exchange rates, we recommend investors tender this offer," he wrote. "We do not expect a competing bid."

Clearwater released second-quarter results this morning, including profit per unit of C$0.21 which, adjusted for currency fluctuation, were "closer to
break even, in-line with our C$0.01 loss estimate," wrote Mr. Mills.

The deal is subject to approval by at least 50% of the minority shareholders. Clearwater units gained over 25% in the course of the last
week, jumping from to C$4.40 from C$3.50.