SalMar announced its participation in the bid for the acquisition of Norwegian Royal Salmon (NRS)

 

SalMar, aNorwegian salmon producer, filed an offer to acquire Norwegian Royal Salmon (NRS) with the Oslo Stock Exchange on Friday, acquiring all of the latter’s outstanding shares at a cash price of NOK 270 per share.
As a result, NRS’s valuation increased To 12.
2 billion Norwegian kroner (1.
35 billion US dollars)
.

 

Previously, the Norwegian maritime group NTS raised the purchase price of NRS to NOK 240 per share, but only 0.
1% of the shareholders agreed
.
As of now, NTS holds approximately 37% of NRS shares
.

 

This time, SalMar has participated in the acquisition at a premium of 12.
5% ​​higher than that of its competitors, which is really ambition
.

 

　　SalMar said that the merger of the two companies will form strong synergies: 1) Both companies have a long history and expertise in the salmon farming field in northern Norway.
The merger will help increase capacity utilization, as well as operational and cost structures.
2) NRS’s new hatchery in Tromsø and SalMar’s existing hatchery will be valuable resources for the Norwegian salmon industry, ensuring the supply of fry and improving the biological performance of the value chain; 3) SalMar is investing in construction InnovaNor’s new processing plant will gain additional capacity and expand the economy by improving capacity utilization and logistics efficiency, as well as reducing biological risks; 4) Both parties have rich expertise in sales and logistics, and will provide better solutions for global customers 5) The potential merger of Icelandic Salmon (controlled by SalMar) and Arctic Fish (controlled by NRS) will carry out aquaculture business in the western fjords of Iceland, simplify offshore operations, optimize production structures, and achieve significant synergies; 6) Both SalMar and NRS have invested heavily in deep sea aquaculture technology, which provides a huge potential for synergy
.
The two parties will work together to further develop and create a far-reaching future of marine aquaculture; 7) the merger will strengthen competitiveness and pave the way for further sustainable development of both parties
.

 

　　SalMar will submit bidding documents on the Oslo Stock Exchange, and the transaction will be conducted after regulatory approval.
The quotation cycle is four weeks and may be extended, provided that SalMar must acquire more than 50% of the NRS company
.

 

　　SalMar said that without affecting the company's ability to pay dividends and value chain investments, acquisition financing will be carried out through a variety of financing channels, including but not limited to the ability to use cash to pay and issue debt
.

 

　　SalMar also requested the NRS board of directors to exercise the authority of the shareholders meeting to issue up to 4.
4 million private equity shares at a price of NOK 270, which will be fully subscribed by SalMar to ensure that the interests of all NRS shareholders are protected
.