SalMar makes offer, Mowi pulls out of NTS race
SalMar has become the latest company to show its interest in acquiring all of the outstanding shares in the NTS ASA aquaculture group, while Mowi has announced that it will not be proceeding with its own offer.
SalMar intends to launch a voluntary offer for all outstanding shares in NTS for a combined NOK 24 (USD 2.70, EUR 2.39) in cash and 0.143241 shares in SalMar, equaling a total of NOK 120 (USD 13.50, EUR 11.94) per share based on the closing price of the SalMar share on 11 February, 2022, according to a new notice issued through the Oslo Stock Exchange. SalMar’s offer values the equity capital of NTS at approximately NOK 15.1 billion (USD 1.7 billion, EUR 1.5 billion). The notice advises that shareholders representing a total of approximately 23.6 percent of the outstanding shares have given pre-acceptances the offer, while shareholders representing a further 26.5 percent of the outstanding shares have issued a support statement related to the offer.
On 24 January 2022, Mowi announced its own offer to acquire all of the shares of NTS at NOK 110 (USD 12.37, EUR 10.94) per share, to be settled 50 percent in cash and 50 percent in Mowi shares. Mowi’s offer, which had valued NTS’ equity at around NOK 13.8 billion (USD 1.5 billion, EUR 1.4 billion), was higher than that made by a company owned by NTS shareholders of NOK 105 (USD 11.80, EUR 10.45) per share. However, Mowi said it would not match or exceed SalMar’s higher offer.
“With reference to the stock exchange announcement dated 24 January, 2022, Mowi's announced intention to launch a voluntary offer to acquire all outstanding shares in NTS ASA will not be executed as the conditions no longer are satisfied,” it said on 14 February.
Explaining its rationale for the offer, SalMar said that NTS – with its subsidiaries SalmoNor AS, Norway Royal Salmon ASA, and Frøy ASA – and SalMar have a long track-record in salmon farming in central and northern Norway as well as the western fjords of Iceland, and that a combination of the parties “will realize significant synergies through a more efficient utilization of their common resources.”
The shareholder group, which represents more than 50 percent of the shares in NTS, offered to purchase all of the outstanding shares for NOK 105 (USD 11.91, EUR 10.45) per share. This offer valued NTS’s equity at NOK 13.2 billion (USD 1.5 billion, EUR 1.3 billion).
NTS Group is a fully integrated salmon farmer, which produces around 84,000 gutted weight tons (GWT) in production areas 7 to 12 in Norway and Iceland. It also holds 7.7 development licenses in Arctic Offshore Farming, and the aqua service company Frøy ASA. It produces around 84,000 gutted weight tons (GWT) in production areas 7 to 12 in Norway and Iceland. It also holds 7.7 development licenses in Arctic Offshore Farming, and the aqua service company Frøy ASA.
Photo courtesy of SalMar