Portugal-based international food industry group Jerónimo Martins has confirmed it is to invest NOK 173.9 million in Norwegian land-based salmon farmer Andfjord Salmon.
“Just a few days before the 2022 United Nations Ocean Conference in Lisbon, we are investing in a promising and truly innovative sustainable business project that is fully aligned with our corporate responsibility priorities,” Jerónimo Martins Chairman and CEO Pedro Soares dos Santos said.
“In a challenging backdrop of both high pressure on the ocean stocks and food security, we believe that investing in this innovative and sustainable production will also work for us as a learning curve accelerator in what regards best practices in aquaculture projects.”
With this investment, done through its agribusiness subsidiary Jerónimo Martins Agro-Alimentar SA, Jerónimo Martins Group becomes one of the largest shareholders in Andfjord Salmon, with an ownership share of 10.1%.
Located at Kvalnes on the island of Andøya, Andfjord Salmon’s land-based production system is based on a flow-through technology.
“We are delighted to attract such a major industrial investor to Andfjord Salmon. We consider it an advantage to have an owner that possesses extensive competence about international food industry sales, marketing, logistics and distribution. Hopefully we can tap into this know-how when we are ready to bring our salmon to the market,” Andfjord Salmon CEO Martin Rasmussen said.
“Jerónimo Martins Group’s approach to sustainable food production and operations is highly impressive. We are proud that the group has identified Andfjord Salmon’s approach to sustainable fish farming as a good match for its own sustainable, agribusiness portfolio,” Rasmussen added.
Under the agreement, Andfjord Salmon will issue, and Jerónimo Martins Agro-Alimentar will subscribe for, 4,144,932 new shares in Andfjord Salmon through a directed private placement.
The subscription price per new share has been set to NOK 41.945, which is equal to the midpoint between the average volume weighted price of the Andfjord Salmon shares in the last 15 trading days and the last 30 trading days on Euronext Growth Oslo.
Andfjord Salmon plans to release smolt in its first pool at Kvalnes, Andøya, this month, while blasting and excavation work for the next pools (Phase 2) at Kvalnes is ongoing.
The producer holds a license to produce 10,000 tonnes maximum allowed biomass (MAB) salmon at Kvalnes, equivalent to a target production volume of 19,000 tonnes HOG.
