Leroy salmon. (Photo: Leroy Seafood Group)

Leroy Seafood buys Havfisk and Norway Seafoods for NOK 3.2 bln

NORWAY
Saturday, June 04, 2016, 00:20 (GMT + 9)

Leroy Seafood Group has entered into an agreement with Aker Capital AS and Aker Capital II AS to purchase 53,501,793 shares in Havfisk ASA and 62,293,254 shares in Norway Seafoods Group AS.

Leroy has also agreed to purchase an additional 1,026,632 shares in Havfisk from Fausken Invest AS.

The purchases represent 64.4 per cent and 73.6 per cent of the total share capital in Havfisk and Norway Seafoods respectively and comprise Aker Capital AS', Aker Capital II AS' and Fausken Invest AS' entire shareholdings in the companies.

The total combined consideration for 100 per cent of the shares in both companies will be NOK 3.2 billion (USD 384 million), paid in cash.

Leroy has agreed upon a purchase price of NOK 36.50 per share of Havfisk and NOK 1.00 per share of Norway Seafoods.

Completion of the purchase will trigger a mandatory offer for the remaining shares in Havfisk ASA at NOK 36.50 per share vs closing at NOK 34.8 on June 2.

Provided completion of the transaction, Leroy also intends to make an offer for the remaining shares in Norway Seafoods Group AS at NOK 1.00 per share.

These purchases will significantly strengthen Leroy's position within the European white fish segment and secure ownership and access to more than 100,000 tons of white fish raw material.

As part of financing the acquisitions, Leroy is contemplating a private placement of 4,000,000 to 5,000,000 new shares (7.3 - 9.2 per cent of total share capital) and up to 300,000 own shares.

Leroy has received significant pre-commitments from existing shareholders, as well as new institutional investors to subscribe for shares in the Private Placement.

Leroy Seafood shares closed at NOK 432 on June 2.

Additional financing for the transaction is contemplated through existing financing and new debt. 

BACKGROUND

• Havfisk is the largest trawler company in Norway with 11 per cent of the total Norwegian white fish quota. Annual catches are around 60,000 MT head off gutted weight.
• In 2015, Havfisk had a total turnover of NOK 1,131 million.
• Norway Seafoods is one of Europe's largest processing, sales and distribution companies for white fish.
• In total, the company is handling more than 70,000 MT round fish equivalents of white fish, purchased from more than 600 vessels.
• In 2015, the Norway Seafoods had a total turnover of NOK 1,979 million.

Reporting By Ole Petter Skonnord/Reuters

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www.seafood.media

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