Excavation work under way at Andfjord Salmon's Kvalnes site last year. The company has raised a generation of salmon in its first pool (top left of photo) and it builing 12 pools in the two huge trenches on the right.

Land-based salmon farmer seeks to raise £22m-£25m

Andfjord will use cash to expand production capacity

Editorial team
Published Modified

Land-based fish farmer Andfjord Salmon has announced that it aims to raise between NOK 300 and 350 million (£22m-£25.7m) through a private placement of new shares.

The money will be used to expand the company’s production capacity at Kvalnes on the Norwegian island of Andøya, ramping up biomass, and for general corporate purposes.

Andfjord Salmon, which uses a flow-through system, said a number of investors had pre-committed to subscribe for the shares.

These comprise:

  • North American seafood processor and marketer High Liner Foods Inc., which has pre-committed to subscribe for and will be allocated new shares for the NOK equivalent of US $10m (approximately NOK 107m).
  • Portugal-based retailer Jerónimo Martins Agro-Alimentar S.A., which holds 25.1% of Andfjord’s outstanding shares and has pre-committed to subscribe for and will be allocated offer shares for the NOK equivalent of €7.5m (approximately NOK 87m).
  • Jan Heggelund, who has a combined holding of 2.7% of the outstanding shares in the company and has pre-committed to subscribe for and will be allocated offer shares for a total of NOK 30m.
  • Eidsfjord Sjøfarm, which holds 4.5% of outstanding shares in the company and has pre-committed to subscribe for and will be allocated offer shares for its pro rata share.
  • Leonhard Nilsen & Sønner AS (LNS), a Norwegian construction specialist holding 0.7% of the outstanding shares in the company, which has pre-committed to subscribe for and will be allocated offer shares for NOK 10m.

Andfjord Salmon chief executive Martin Rasmussen said: “Our Kvalnes build-out is on track and on budget, and the ‘post-smolt’ opportunity we announced on 29 February this year has generated significant interest from industrial investors.

“We have decided to utilise this positive momentum to our advantage and raise funds that provide us with added financial flexibility. We are delighted that strong, international industrial investors have pre-committed for substantial amounts.”

The bookbuilding period for the private placement commenced today (May 22) at 16:30 CEST and closes tomorrow at 08:00 CEST.

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