LandbasedAQ.com
Andfjord Salmon's biggest owner increases stake with £4.3m share purchase
Portugal-based multinational food producer Jeronimo Martins Agroalimentar (JMA) has increased its shareholding in Norwegian land-based fish farmer Andfjord Salmon Group by buying an extra 2 million shares of NOK 30 each in a deal worth NOK 60m (£4.3m).
The shares, which represent 2.95% of the total outstanding shares in the fish farmer, were sold by Andfjord Holding AS, which is owned by Andfjord Salmon founder Roy Bernt Petterssen. The purchase increases JMA’s holding from 25.08% to 28.03%.
Andfjord Salmon said the transaction serves strategic purposes for both parties.
Reduced debt
For Andfjord Holding AS, the proceeds from the sale will relieve the company from the pressure of managing its wealth tax obligations, while allowing it to reduce its debt, which was tied to its forward exposure in Andfjord Salmon Group AS, covering approximately 2,000,000 shares. Following this transaction, Andfjord Holding AS will no longer have shares on forward contracts and thus no debt related to its ownership in Andfjord Salmon Group.
Andfjord Salmon said that for JMA, which is Andfjord's biggest shareholder, the acquisition reflects its confidence on a strategic project with given proofs in terms of quality and high-level standards of production.
“The sustainable innovation culture inherent to Andfjord Salmon Group AS is a valuable source of knowledge and inspiration to JMA,” added the salmon farmer.
A key partner
Petterssen still holds nearly 4.6 million shares in Andfjord Salmon and will remain as a board member.
“We are very pleased that JMA is the buyer of these shares. JMA has been a key partner from the start, and their contributions at the board level have been instrumental to the success of Andfjord Salmon Group AS,” said Petterssen.
Andfjord Salmon is developing a 40,000-tonne flow-through salmon farm at Kvalnes on the island of Andøya in the Arctic Archipelago of Vesterålen, and has completed a proof-of-concept production cycle in its first completed pool.
In the cycle, the company achieved an industry-leading survival rate of 97.5%, feed conversion ratio of 1.05, superior share of 91.1%, and had class-leading low energy consumption of just 1 kWh to produce one kilo of salmon.
The company has a long-term ambition to reach 90,000 tonnes (head on gutted) of annual production across Kvalnes and two other sites, Breivika and Fiskenes, also on Andøya.
