Frøya Municipality, Norway-headquartered salmon farmer SalMar ASA has entered into an agreement to acquire 45 percent ownership in Refsnes Laks AS, with the NOK 665 million (USD 75.2 million, EUR 64 million) transaction set to comprise a combination of share purchases and private placement.
Refsnes Laks AS currently has four licenses for the production of Atlantic salmon and a time-limited viewing license in central Norway, with maximum allowed biomass totaling 3,932 metric tons (MT).
According to Refsnes Laks Chairman Ivar Refsnes, the two companies have had “a close and value-creating collaboration” for many years.
“This applies to production, processing, and sales in an international market,” Refsnes said. “SalMar's acquisition of a significant ownership interest in the company is a natural continuation of this collaboration. It will strengthen the financial basis for the company with its base in Åfjord municipality. This is a good solution for both parties.”
SalMar said the transaction gives it further sustainable growth in the immediate vicinity of existing fish farming areas in central Norway, and will ensure “significant synergies and the further development of existing activities and operational competence.”
The completion of the deal is subject to the approval of Norwegian competition authorities.
SalMar is also currently in pole position in the bidding race for outstanding shares in Norway Royal Salmon (NRS). Its offer of NOK 270 (USD 30.55, EUR 26.01) per share is 12.5 percent higher than the latest offer of NOK 240 (USD 27.16, EUR 23.12) per share on the table from aquaculture group NTS ASA. SalMar’s offer values NRS at approximately NOK 11.8 billion (USD 1.3 billion, EUR 1.1 billion). Its offer document is presently awaiting regulatory approval by the Oslo Stock Exchange, expected in the first half of September 2021.
Photo courtesy of Refsnes Laks AS
