SalMar to Acquire 70% Stake in Måsøval for 3.4B NOK, Shares Surge

Shares in Norwegian fish farmer Måsøval AS surged more than 14% after competitor SalMar ASA announced it had agreed to acquire a controlling stake in the company for approximately 3.40 billion Norwegian crowns (NOK).

Transaction Details

SalMar entered into an agreement with Heimstø AS to purchase its entire holding of 85,727,553 shares, which represents about 70% of Måsøval's share capital, according to a statement released Wednesday. The deal values the entire equity of Måsøval at approximately 4.84 billion NOK.

The key terms of the acquisition include:

• A purchase price of 39.50 NOK per Måsøval share.
• A total consideration of approximately 3.40 billion NOK.
• The payment will consist of 90% cash and 10% in SalMar shares, valued at 461.40 NOK per share based on the July 6 closing price on the Euronext Oslo Børs.

Following the transaction's completion, SalMar stated it will ensure minority shareholders have the opportunity to sell their shares at the same price of 39.50 NOK per share.

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Strategic Rationale

SalMar framed the acquisition as a move to create "an even stronger platform for continued sustainable growth in Central Norway." The company highlighted the two firms' shared history and heritage on the island of Frøya, a key region for Norwegian aquaculture.

"We believe this represents an exciting industrial opportunity that will strengthen SalMar’s position in Central Norway, one of our most important core regions for aquaculture,” said Frode Arntsen, CEO of SalMar.

Path to Completion

The deal's finalization is subject to customary conditions, including receiving all necessary regulatory approvals. As part of the agreement, Heimstø has been granted a 12-month right to sell the SalMar shares it receives back to the company at the agreed-upon price of 461.40 NOK per share.