Mowi enters agreement to buy Norwegian salmon farming company
Mowi has entered into a share purchase agreement to acquire 100 percent of the shares in Norwegian salmon farming company K. Strømmen Lakseoppdrett AS.
K. Strømmen has four licenses, each with a maximum allowed biomass of 780 metric tons (MT) – for sea-based salmon production in the Bremanger municipality, Sogn og Fjordane.
Announcing the transaction, Mowi said, “The potential acquisition strengthens our position in an area already core to Mowi Region Mid, and supports our long-term strategy of being a world leading and integrated producer of seafood proteins.”
The acquisition price on a cash and debt free basis is NOK 790 million (USD 92.4 million, EUR 82.1 million). Thirty percent of the purchase price will be settled through issuing new Mowi shares and 70 percent of the purchase price will be settled in cash. The subscription price for the consideration shares will equal the volume weighted average trading price of the shares in Mowi on the five business days prior to the closing date.
The transaction is subject to approval by the Norwegian competition authorities and customary closing conditions.