Síldarvinnslan hf has entered a deal to acquire the entire shareholding in fellow Icelandic fisheries company Vísir hf for ISK 20 billion.
With the interest-bearing debt of Grindavík-based Vísir hf. amounting to ISK 11 billion, the transaction will amount to a total of ISK 31 billion.
According to a filing on the Icelandic stock exchange, Síldarvinnslan and Vísir agree that the transaction will strengthen the position of both companies for the future.
It also advises that Vísir will be run as a subsidiary of Síldarvinnslan and that Pétur Hafsteinn Pálsson will continue to be managing director of Vísir.
Gunnþór Ingvason CEO of Síldarvinnslan said the headquarters of Síldarvinnslan will be with Vísir in Grindavík, as it operates high-tech processing and a great deal of knowledge and human resources.
“We envisage great opportunities for the processing of seafood in Grindavík, among other things due to increased fish farming in the area in the coming years. I believe that this business is of great benefit to all parties, as the fisheries sector is an international industry that must withstand tough competition. In the long run, the business should therefore strengthen the competitive position of the fishing industry and services in Grindavík.”
If the transaction is confirmed by a shareholders’ meeting of Síldarvinnslan and the Competition Authority, the current fishing permits of Síldarvinnslan are expected to be slightly above the current allowed quota ownership limit.
The company will be given six months to make adjustments.
In the fishing year 2022-2023, the group’s expected catch quotas are over 36,000 cod equivalent tonnes. The annual turnover in 2021 was just over ISK 30 billion and profit around ISK 11 billion.
Last month, Síldarvinnslan made an agreement with Bremesco Holding Limited and a group of other shareholders to purchase their accumulated shares of 10,899,684 or 34.2% in Norwegian salmon farming company Arctic Fish Holding AS.
