Grieg Seafood ASA (the Company) has entered into an agreement with Scottish Sea Farms Ltd for the sale of all shares of Grieg Seafood Hjaltland UK Ltd, the parent company of Grieg Seafood ASA’s Shetland business. The enterprise value is set at £ 164million, assuming normalized working capital, and needs to be adjusted for cash and debt.
The transaction is subject to certain customary closing conditions. It is expected to close in the fourth quarter of 2021, depending on the processing time with the relevant competition authorities.
Commenting on the transaction, Andreas Kvame, CEO of Grieg Seafood ASA, said:
“The shutdown of our salmon farming operations in the Shetlands is part of our communicated strategy, and the divestiture represents an important step in Grieg Seafood’s strategy to focus future farming activities in Norway and Canada, where we see the greatest potential for profitable growth.
After a long period of restructuring and operational improvement of three years, the Shetlands are now showing good performance with sea lice levels at historically low levels, increased survival and a high top share. I am happy to say that we are putting the operations back together.
I would like to sincerely thank all the employees of Grieg Seafood Shetland for their impressive efforts, especially during the difficult times of the pandemic. I have no doubts that the Shetland business will be in good hands and that salmon farming will continue to create value for local Shetland communities for years to come.
By 2025, Grieg Seafood ASA aims to increase production to 130,000 tonnes of annual harvest, reduce costs and reposition the company in the value chain through downstream partnerships. All areas are based on sustainability, which is the license to operate the company and is integral to long-term value creation.
The concentration of concentration, resources and investments on Norwegian and Canadian agricultural regions, as well as a strengthened balance sheet, will enable the Company to better seize the opportunities for sustainable growth in these geographies and strengthen the execution of the strategy 2025. The operational areas of intervention remain post-smolt, digitization and improvement of fish health and welfare.
DNB Markets and Nordea Markets are acting as financial advisers to Grieg Seafood ASA in connection with the sale.
Grieg Seafood will host a conference call followed by a Q&A on June 29, 2021 at 8:00 p.m. CEST. The call will be moderated by CEO Andreas Kvame and CFO Atle Harald Sandtorv. The call will be conducted in English.
To participate in the event, please use one of the following access numbers:
NO: + 47-21-956342
UK: + 44-203-7696819
United States: +1 646-787-0157
SE: + 46-4-0682-0620
Participant code for all countries: 534384
For more information, please contact:
Andreas Kvame, CEO
Mobile phone: +47 907 71 441
Atle Harald Sandtorv, Chief Financial Officer
Mobile phone: +47 908 45 252
For media inquiries, please contact:
Kristina Furnes, Group Communication Manager
Mobile phone: +47 48185505 / [email protected]
About Grieg Seafood ASA
Grieg Seafood ASA is one of the world’s leading salmon producers, targeting 130,000 harvest tonnes (GWT) in 2025. Our farms are located in Finnmark and Rogaland in Norway, British Columbia and Newfoundland in Canada , and in Shetlands in the United Kingdom. Our head office is located in Bergen, Norway. Grieg Seafood ASA was listed on the Oslo Stock Exchange in June 2007. More than 900 people work at the company
in all our regions.
For more information, please visit www.griegseafood.com.
This information is considered inside information in accordance with the EU Market Abuse Regulation and is subject to disclosure requirements in accordance with Section 5-12 of the Norwegian Securities Act.
The stock market announcement was made by May Hansen, Executive Administrative Secretary, Grieg Seafood Group ASA, on June 29, 2021 at 7.15 p.m. CEST.