Statt Torsk ASA has entered into a merger agreement with whitefish company Vesterålen Havbruk.
The deal will see the Norwegian cod farming company transfer all of its business, including assets, rights and obligations, to a wholly-owned subsidiary of Vesterålen Havbruk
It advised that consideration shares in the merger will be issued by Vesterålen Havbruk, based on an equity value of Statt Torsk of NOK 255 million, which implies a value per share of NOK 1.20 and an equity value of Vesterålen Havbruk of NOK 610 million.
The merger will also involve a delisting of Statt Torsk’s shares on Euronext Growth Oslo.
Vesterålen Havbruk has also made an unsecured and interest-free NOK 40 million working capital loan facility available to Statt Torsk.
“We are extremely pleased with this contemplated transaction. It solves our imminent needs of cash reflecting the true values of our companies in the current market; but most of all it is a strategic move of consolidation of our young industry. A business combination with Vesterålen Havbruk is our preferred option to optimise shareholder value,” Statt Torsk CEO Gustave Brun-Lie said.
Vesterålen Havbruk CEO Brynjar Kværnstuen said joining forces with Statt Torsk would give the new entity the flexibility to deliver cod to market year-round in the future – by combining harvests from sites in the north and south.
“With decreasing quotas on wild cod in the coming years, the timing for scaling farmed cod has never been better. Together we will work for a better ratio between harvesting size, higher volumes, and shorter harvesting times. This will reduce the overall production cost in the future,” Kværnstuen said.
The Vesterålen Havbruk group is primarily located in the Øksnes and Bø municipalities of Norway. Its subsidiaries are involved in harvesting of farmed cod, processing facility for wild and farmed cod and salmon, and are also running a traditional fish reception.
In Q4 2023 the company will have the first operational stun and bleed vessel delivered and specialised for farmed cod.
It has already conducted one farmed cod production cycle.
