Image: Frøy / FIS
Goldman Sachs to buy Norwegian aquaculture support services firm Frøy
Tuesday, June 06, 2023, 07:00 (GMT + 9)
Goldman Sachs Asset Management is buying Norway-based aquaculture support services company Frøy for NOK6.6bn (USD 5.97M).
The asset manager, via its infrastructure funds, has agreed to buy NTS’s entire 72.11% stake in Oslo Stock Exchange-listed Frøy by offering NOK76.50 (USD 6.92) for each share held. Goldman Sachs will also make an unconditional mandatory cash offer to acquire all other shares in Frøy at the same price.
The price per share being offered represents a 50% premium to the closing price of the Frøy shares on 12 January 2023, the day before Frøy announced its strategic review.
Back in January, NTS, a subsidiary of salmon producer SalMar, decided to “explore strategic alternatives in Frøy with the aim of maximising value” for its shareholders. At the time NTS said it had engaged DNB Markets as financial adviser and Advokatfirmaet BAHR as legal adviser to assist in the strategic review.
Frøy provides aqua services to Norwegian salmon farmers. The company’s fleet of 80 vessels offers a range of infrastructure solutions, including transport of fish, sorting, counting, cleaning of nets, treatment for diseases and lice, inspection, installation and maintenance of salmon farming sites.
Tavis Cannell, global co-head of infrastructure at Goldman Sachs Asset Management, said: “We are excited to invest in Frøy, as one of the leading companies providing mission-critical transportation and support infrastructure to the aquaculture industry.
“Wellboats and service vessels are vital to enabling best-in-class farming practices and Frøy is at the forefront of driving sustainability.”
Frode Arntsen, CEO of SalMar, said: “We are pleased to have successfully completed the strategic review in Frøy announced earlier this year. Following a constructive process and after reaching a final agreement we believe we have found the best solution, not only for the SalMar group, but for all shareholders in Frøy.
“Following a successful process with many highly reputable interested parties involved, we have found a buyer for the shares in Frøy who we believe is a good fit and will be a strong partner for Frøy in the future.”.
Author: Razak Musah Baba | IPE Real Assets