Owners of Nergård AS and Norsk Sjømat AS have decided to consolidate the two businesses and create a fully-integrated seafood group with operations spanning whitefish harvesting, pelagics procurement, and salmon farming – as well as processing and global distribution activities.
The group’s new parent company, Norsk Sjømat ASA, has also announced its intention to launch an initial public offering (IPO) of shares, and to apply for a listing on the Oslo Stock Exchange (Oslo Børs).
According to an announcement filed with Oslo Børs, Norsk Sjømat is the second-largest fishery group in Norway, holding a significant portfolio of perpetual quotas for cod, haddock, saithe, and other species – in addition to a commercial salmon farming license – and, subject to fulfilment of certain requirements, a public viewing license for salmon farming.
Its operations are carried out along the Norwegian coastline – from Stranda on the northwest coast to Finnmark in the north.
"We are creating a new driving force in the Norwegian seafood industry. Together, Nergård Group and Norsk Sjømat AS will have even more strength to develop new industry, new possibilities, and new jobs in northern Norway and the rest of the country. This will create value for local communities and the shareholders," Nergård CEO Tommy Torvanger said.
Torvanger will also be CEO of the new group.
"We will build a strong common corporate culture, with more than 500 dedicated employees on land and at sea. This is a move that will bring out great synergies between the wild fish and aquaculture industry. We have ambitions and plans for increased processing of Norwegian raw materials in Norway," Norsk Sjømat’s CEO Per Magne Grøndahl said.
Grøndahl will be the new group’s chairman of the board.
Norsk Sjømat said it anticipates the IPO will enable the group to pursue growth opportunities and optimize its capital structure and investment portfolio.
It will comprise a primary offering of new shares of NOK 700 million to NOK 800 million (USD 75.1 to USD 85.8 million, EUR 63.8 million to EUR 73 million), and a secondary sale of shares. The offering will consist of a public offering to investors in Norway and a private placement to certain institutional and other professional investors internationally.
Following the completion of the ongoing reorganization of the group prior to the launch of the IPO, the company will have the following shareholders: Companies controlled by Bjarte Tunold and Per Magne Grøndahl (71 percent) and Nergård Invest Samherji AS (29 percent).
The total ownership interest of companies controlled by Bjarte Tunold and Per Magne Grøndahl will be reduced to approximately 54 percent, primarily as a result of being diluted by the issuance of new shares, in addition to sale of shares in the IPO, while Nergård Invest Samherji AS will sell its entire shareholding in the IPO.
Subject to receiving the relevant approvals from Oslo Børs, the approval of a prospectus from the Norwegian Supervisory Authority, as well as the prevailing equity capital market conditions, the IPO is expected to be launched in mid-October 2020.
DNB Markets, part of DNB Bank ASA, is acting as sole global coordinator, and will, together with ABG Sundal Collier ASA and Pareto Securities AS, act as joint bookrunners in connection with the IPO.
