Norway-based salmon farmer SalMar has announced that it has entered into a merger plan with Norway Royal Salmon ASA (NRS). Salmar will acquire NRS following the merger.
SalMar ASA and Norway Royal Salmon ASA have entered into a merger plan whereby the two entities will merge, with SalMar as the acquiring company in the merger.
“The rationale behind the Merger is to increase value creation in the regions where the companies operate and enable the realization of synergies between the companies,” SalMar said in a statement.
SalMar said NRS shareholders will receive 0.369 shares in SalMar per share in NRS, resulting in a value of NOK 265.18 (USD 28.13) per NRS share. The ratio is based on the average volume weighted closing share-price of SalMar from 4 April to 20 May, 2022. This is a premium of 6.3 percent to the NRS closing price on 27 May, 2022, and 12.1 percent to NRS’ average closing share price over the past 30 days.
“The Merger is conditional on NRS acquiring SalmoNor AS immediately prior to the consummation of the merger, and that all conditions for the completion of SalMar’s voluntary tender offer for the shares in NTS ASA have been met or waived, or the NTS offer has been completed,” the statement added.
“We join strong teams that encompass the best salmon farming know-how in Norway. The merger will also allow synergies to be earlier and better realised than solely through the completion of SalMar’s voluntary tender offer to acquire all shares in NTS,” says Leif Inge Nordhammer, Chairman of SalMar.
“A merger between NRS and SalMar is based on a sound industrial rationale, while also securing a good solution for the shareholders of NRS. Through the merger, the shareholders will receive a frequently traded share, and may expect significant synergies and strong dividend capacity, in a merger that values the NRS share at a historically high level,” comments Paal E. Johnsen, Chairman of NRS.
The merger is expected to be completed during the third quarter of 2022 and it is subject to shareholders approval.
