Norway Royal Salmon buys 50 percent of shares in the Icelandic trout and salmon company Icelandic Arctic Fish for 29 million euros or about 270 million, according to a recent stock exchange announcement Wednesday.
The transaction leads to the NRS and the existing shareholders of the Arctic Fish establishes a joint venture, where NRS owns 50.0 percent of Arctic Fish. The remaining 50.0 percent of Arctic Fish is owned by Bremesco Holding Ltd and Novo ehf, which owns respectively 47.5 percent and 2.5 percent, according to the stock exchange notice
Norway Royal Salmon will finance the transaction use of existing cash reserves and existing credit facilities. Time for completion of the transaction depends on approvals from third parties. Arctic Fish will not be consolidated into NRS their accounts, it says.
As a result, the NRS into salmon farming in Iceland.
– NRS look at Iceland as an exciting area with great growth potential, and we will through the transaction get a position in Iceland where we can take an active role in the industry’s future development. The transaction leads to the Arctic Fish will be able to take advantage of NRS’s expertise in both farming and sales, and the goal is to build the leading aquaculture company in Iceland, says CEO Charles Autumn Lund NRS message.
Analyst Allison Giskeødegård Nordea Markets think NRS will rise to the message.
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