Mowi ASA has announced it intends to launch an offer to acquire all of the shares of Norwegian aquaculture group NTS ASA at NOK 110 (USD 12.28, EUR 10.84) per share, to be settled 50 percent in cash and 50 percent in Mowi shares.
Mowi said it valued NTS as one of the leading producers of Atlantic salmon in Norway and Iceland. From a foundation in central Norway, the NTS Group has grown into a fully integrated salmon farmer, producing 84,000 gutted-weight tons in production areas 7 to 12 in Norway and Iceland, it said.
NTS also holds 7.7 development licenses in Arctic Offshore Farming, and the aqua-service company Frøy ASA.
“NTS's geographical footprint and competent organization fit unusually well with Mowi’s current operations and strategy. Together, we can maintain and create new jobs and further develop competence clusters along the Norwegian coastline, for the benefit of local communities,” Mowi CEO Ivan Vindheim said.
Mowi’s offer implies a total consideration for all of the shares of NTS of approximately NOK 13.8 billion (USD 1.5 billion, EUR 1.4 billion), with the offer price representing a premium of 18.3 percent over the closing price of the shares on 14 January, 2022, of NOK 93 (USD 10.38, EUR 9.17), and a premium of 23.9 percent over the average volume weighted share price during the last 30 trading days, up to and including 14 January, 2022, of NOK 88.80 (USD 9.91, EUR 8.75).
The value of the consideration shares shall be based on the volume-weighted average price of shares in Mowi last 20 trading days prior to the launch of the offer.
If launched, complete details of the offer will be described in an offer document to be sent to NTS's shareholders, following review and approval by Oslo Stock Exchange.
SpareBank 1 Markets is acting as financial advisor to Mowi.
Mowi’s offer isn’t the only one on the table. Last week, a company owned by shareholders in NTS announced plans to make a voluntary cash offer to purchase all of the outstanding shares in the group for NOK 105 (USD 11.72, EUR 10.35) per share, with the offer valuing the group’s equity at NOK 13.2 billion (USD 1.5 billion, EUR 1.3 billion).
Collectively, the group represents more than 50 percent of the shares in NTS. It said the rationale for the offer was to protect and further develop share values in NTS by continuing to explore alternatives for its shareholders, including selling shares.
Last year, NTS won a bidding war for SalmoNor, acquiring an additional 37,000 metric tons of salmon production. Both Mowi and SalMar were also bidding to acquire the company.
Photo courtesy of MNH/Steinar Johansen