Bakkafrost buys majority stake in The Scottish Salmon Company
Faroe Islands-headquartered salmon producer Bakkafrost is moving ahead with its recently announced acquisition of The Scottish Salmon Company.
The company has completed the acquisition of 133,125,109 shares in The Scottish Salmon Company (SSC) from majority shareholder Northern Link Ltd. for more than NOK 3.76 billion (USD 411.1 million, EUR 374 million), or NOK 28.25 (USD 3.09, EUR 2.81) per share.
Following this purchase from the Scottish private equity fund, Bakkafrost now owns 150,974,735 of the shares in Edinburgh-based SSC. This represents approximately 77.8 percent of all of the shares in issue.
Seventy percent of the purchase price due to Northern Link was settled in cash, with the remaining 30 percent financed by a seller's credit.
On the terms of the Securities Trading Act, Bakkafrost will make a mandatory cash offer for the remaining shares in SSC. The formal offer is expected to be launched no later than 31 October 2019.
In volume terms, SSC is Scotland’s second-largest salmon farmer, producing 29,913 metric tons (MT) in 2018 and 18,463 MT in the first half of this year.
Photo courtesy of Bakkafrost