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Fish Farmer Bakkafrost Bids £517m For Scottish Salmon

Published on Sep 26 2019 1:00 PM in Fresh Produce tagged: Scotland / salmon / World News / Bakkafrost / Scottish Salmon Company / Faroe Islands

Fish Farmer Bakkafrost Bids £517m For Scottish Salmon

Faroese fish farmer Bakkafrost has agreed to buy a 68.6% stake in rival The Scottish Salmon Company from Northern Link Ltd and will bid for the remaining shares, Bakkafrost and The Scottish Salmon Company said on Wednesday.

The planned transaction, valuing Scottish Salmon at £517 million (€583.49 million), will allow Bakkafrost to cut production costs by utilising greater economies of scale at a time of declining salmon prices.

Both companies are listed on the Oslo Stock Exchange, a unit of Euronext.

To fund the purchase, Bakkafrost plans to sell 7.33 million new shares to investors, which, if sold at Wednesday's closing price, would raise some 3.87 billion Norwegian crowns ($428 million).

DNB Markets, Goldman Sachs International and Nordea were appointed to lead the share issue, Bakkafrost said.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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