Síldarvinnslan’s acquisition of Visir nearly complete

Published on
November 22, 2022
Síldarvinnslan vessels at sea.

Neskaupstaður, Iceland-based Síldarvinnslan has completed the last conditions of its acquisition of fellow fishing firm Vísir by increasing the number of new shares going to the selling company.

In July 2022, Síldarvinnslan entered a deal to acquire Vísir for ISK 20 billion (USD 140.3 million, EUR 136.5 million). With the interest-bearing debt of Grindavík-based Vísir amounting to ISK 11 billion (USD 77.2 million, EUR 75.1 million), the transaction was set to total ISK 31 billion (USD 217.5 million, EUR 211.6 million). The purchase price for Vísir was to consist of shares in Síldarvállúnnin (70 percent) and cash (30 percent).

Síldarvinnslan has now confirmed that the last conditions of the transaction were completed on 17 November, 2022, and in accordance with the approval of the company’s shareholders on 18 August, its board has now agreed to increase the deal’s share capital by ISK 145.9 million (USD 1.02 million, EUR 996,200) through the issuance of new shares. These new shares will be delivered to the sellers following the settlement of the transactions and after receiving the approval of the companies register of Iceland Revenue and Customs and the Nasdaq Iceland Stock Exchange. Vísir is restricted from selling any of its shares until three months from the registration of its official receipt of the shares. After that time, it will be allowed to sell one-third of the delivered shares. After six months, it can sell an additional third of the shares, and after 12 months has passed, all restrictions on the remaining shares will be removed. The aim is for the transaction to be settled on 1 December, 2022.

According to an earlier filing with Nasdaq Iceland, Vísir will become a subsidiary of Síldarvinnslan and the entity will be based in Grindavík, Iceland. Following the acquisition, Pétur Hafsteinn Pálsson will continue as Vísir’s managing director.

Vísir operates four vessels in Iceland’s total allowable catch system and two in the hook TAC. The company also operates processing in Grindavík and owns foreign subsidiaries. In its 2022-2023 fiscal year, its expected catch quotas will give it around 15,000 metric tons of cod.

Síldarvinnslan is one of the largest fisheries companies in Iceland and is the country’s main producer of pelagic products. In the fishing year 2022-2023, the group's expected catch quotas are over 36,000 MT of cod.

Photo courtesy of Síldarvinnslan

Contributing Editor reporting from London, UK

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