Norwegian aquaculture group NTS ASA has offered to buy all shares in Norway Royal Salmon ASA (NRS) for NOK 209 (USD 23.69, EUR 20.07) per share, with the offer valid from 19 July to 16 August 2021.
In a statement, NTS said that it decided to submit the bid for all shares in NRS after deciding that it does not want to sell down in the listed fish farming company.
“NTS ASA has a stated goal of being an active participant in the production of 100,000 metric tons (MT) of salmon in Norway during a three- to five-year period. Rather than sell down to NRS, we seek to increase our exposure to Norwegian aquaculture, in a company well positioned for further growth,” NTS Chairman Odd R. Øie said.
The tender obligation was triggered when the previously entered into agreement between NTS’s wholly-owned subsidiary Midt-Norsk Havbruk AS (MNH) and Måsøval on the sale of Ice Fish Farm was implemented in June.
The Oslo Stock Exchange is expected to approve NTS's mandatory offer today (16 July, 2021), allowing all shareholders in NRS to receive the offer.
NTS explained that the offer price of NOK 209 per share corresponds to the highest price paid or agreed by the group or consolidated parties during the last six months before the offer obligation occurred.
NRS aims to harvest a total of 52,000 MT of salmon this year, of which 40,000 MT will be produced in Norway. It also owns 50.3 percent of Arctic Fish, which produces salmon on the northwest coast of Iceland.
In June, an agreement was reached between the boards of NTS and Salmonor to merge the Namdal salmon pioneers MNH and Salmonor. The merged company has a total harvest volume in 2021 of approximately 37,000 MT.
The implementation of the Måsøval agreement in June involved settlement in shares in NRS and gave NTS control over 30.84 percent of the shares and votes in NRS. At the same time, board member and largest owner of NTS, Helge Gåsø, owned 3.72 percent of the NRS shares through Gåsø Næringsutvikling.
The total ownership of 34.57 percent triggered an offer obligation on all NRS shares that were not owned by NTS ASA, MNH, or Gåsø Næringsutvikling.
The group was thus obliged to either make an offer to buy the remaining shares in NRS, or sell them down, within four weeks.
Gåsø Næringsutvikling will sell its ownership position to NTS ASA at the same price as offered to other NRS shareholders.
Photo courtesy of Norway Royal Salmon
