Bakkafrost: Acquisition of remaining outstanding shares (51%) of P/F Faroe Farming and simultaneous filing of two farming licenses
P/F Bakkafrost has today entered an agreement with Sp/f Hjallur to acquire 51% of the shares in P/F Faroe Farming for a cash consideration of DKK 75 million. With this agreement, Bakkafrost will become the owner of 100% of the shares in P/F Faroe Farming effective from 1 July 2016.
Simultaneously with the agreement of acquiring 51% of the shares in P/F Faroe Farming, Bakkafrost has filed two licenses to the Faroese Authorities. The licenses filed are Svínáir (A-03) and Hovsfjørður (A-17/18).
Following these two transactions, P/F Bakkafrost has 14 licenses for farming salmon in the Faroe Islands.
Regin Jacobsen, CEO, comments:
“Bakkafrost expects salmon farming in Suðuroy can be significantly optimized. Bakkafrost has announced an investment plan for the next five years, and part of these opportunities can result in increased value for both Bakkafrost, and Suðuroy in general.
About P/F Faroe Farming
P/F Faroe Farming is a salmon farming company and operates in the southern part of the Faroe Islands, Suðuroy. P/F Faroe Farming holds three farming licenses in Suðuroy, Faroe Islands and the total harvested volumes for 2015 was 4,681 tonnes. One of the licenses, which Bakkafrost files to the Faroese Authorities, is Hovsfjørður (A-17/18) and P/F Faroe Farming will therefore hold two farming licenses going forward.
In 2015, P/F Faroe Farming reported revenues of DKK 154 million and EBIT of DKK 13 million. Net profit in 2015 was DKK 13 million. As of 31 December 2015, P/F Faroe Farming’s total assets amounted to DKK 174 million and the equity was DKK 80 million.
P/F Faroe Farming has an average number of 59 full-time employees.
Daily operations of P/F Faroe Farming will continue unchanged and P/F Faroe Farming will be a subsidiary of P/F Bakkafrost. From 1 January 2017 P/F Faroe Farming will merge into Bakkafrost Farming.
The transaction is subject to legal approval.
Regin Jacobsen, CEO of P/F Bakkafrost: +298 23 50 01 (mobile)
Gunnar Nielsen, CFO of P/F Bakkafrost: +298 23 50 60 (mobile)
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Bakkafrost is the largest salmon farmer in the Faroe Islands. The Group is fully integrated from feed production to smolt, farming, VAP and sales. The Group has production of fishmeal, fish oil and salmon feed in Fuglafjørður. The Group operates licenses on 14 farming fjords. The Group has primary processing in Klaksvík, Strendur, Kollafjørður, and secondary processing (VAP) in Glyvrar and Fuglafjørður. The headquarter is located in Glyvrar, and the company has a total of around 725 full-time employees.
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