SalMar ASA has entered into a deal that will see it buy and merge with fellow salmon farming company Norway Royal Salmon ASA (NRS).
The agreed exchange ratio is based on the average volume weighted closing share price of SalMar from 4 April to 20 May 2022 and is based on an exchange ratio of 0.369 shares in SalMar per share in NRS results in a value of NOK 265.18 per NRS share. This gives a premium of 6.3% to the NRS closing price on 27 May 2022 and 12.1% to NRS’ average closing share price over the past 30 days.
With the companies having overlapping interests in Norway, Iceland’s west fjords and also offshore, SalMar Chairman Leif Inge Nordhammer, said the merger made sense.
“We join strong teams that encompass the best salmon farming know-how in Norway. The merger will also allow synergies to be earlier and better realised than solely through the completion of SalMar’s voluntary tender offer to acquire all shares in NTS,” he said.
NRS Chairman Paal E. Johnsen added that the merger was based on “sound industrial rationale”.
He said, “Through the merger, the shareholders will receive a frequently traded share, and may expect significant synergies and strong dividend capacity, in a merger that values the NRS share at a historically high level.”
Subject to approval by the respective EGMs, it is expected the merger will be completed in the third-quarter of this year.
