Local salmon firm Tassal has rejected a $1 billion bid from a Canadian aquaculture company. 

Tassal has rejected its third buyout proposal from Canada’s Cooke Inc and is refusing to engage in further talks, reports say. 

For its part, Cooke says the $1.04 billion takeover proposal for Tassal is a decent premium, given that the Tasmanian government is not granting new marine leases, which helps to bolster salmon volumes at Tassal.

But Tassal says the $4.85 per share price undervalues it, despite the figure being 22 per cent above the closing price of $3.97 before the proposal became public.

The Tasmanian government has a moratorium on new marine leases for salmon farming while it works on a 10-year plan to start from next year. One of the principles of the new system is expected to be no net increase in leased farming areas in Tasmanian waters beyond current allocations.

However, Tassal’s board believes the company has an “attractive independent future” and will be better off going it alone.

Cooke, which operates across 10 countries, first made an offer for Tassal in 2010. It was also interested in buying Tassal rival Huon Aquaculture last year, before it was picked up for $425 million by Brazilian food giant JBS.

Cooke Inc has issued a statement saying it is pursuing a deal with Tassal “on a friendly basis”, offering an attractive premium “considering Tassal’s salmon volumes have been maximised given restrictions on new marine farming leases”.

Cooke-linked companies and chief executive Glenn Cooke have managed to acquire a 5.4 per cent stake in Tassal, according to the AFR.