And growth can happen much more cheaply than in Norway!
On Sunday, iLaks reported on NTS’s acquisition of the majority of the stock majority in Icelandic fish farming company Fiskeldi Austfjarda. The seller was the investment company MNH Holding. Wednesday morning, NTS made an in-depth stock exchange announcement on its acquisition on the island of the sagas.
Fiskeldi Austfjarda is one of two farmers operating on the east coast of Iceland, and today has a license volume of 11,000 tonnes of salmon and trout, which has been increased to 21,000 tonnes. The company has submitted license applications hoping to achieve a production volume of 34,000-54,000 tonnes in the longer term.
A lot more
That will be more than twice as much as the slaughter volume in NTS.
The company owns 50 percent of the shares in the smolt producer Isthor and 50 percent of the shares in the processing company Búlandstindur.
Last year, Fiskeldi Austfjarda slaughtered 1,458 tons, achieving a negative operating figure of -2.9 million dollars. The company has a net debt of close to 21.7 million dollars on a balance of 32.5 million dollars.
Wellboat and service boat
The transaction provides a basis for potential growth in the NTS Group’s total aquaculture business as well as opportunities for growth in the group’s other business areas that support aquaculture. This will naturally be wellboat, service boat and shipping, NTS writes in the stock exchange report.
The purchase price for the shares will be capped at NOK €31m. The price of the shares depends on the allocated license volume for salmon farming in Iceland, and will increase linearly in proportion to the license volume allocated to the company. As per the agreement, the terms of a price of €7,8m for the shares are fulfilled, so that this amount is due on the completion date. If the company achieves an increase in the licensed volume over a period of 10 years from the date of implementation, the total purchase price may gradually increase to a maximum of €31m at 24,000 tonnes or more. In addition, parts of the purchase price are subject to being able to farm salmon in at least two fjords in Iceland, to ensure good biology.
They have a deadline to fulfill terms ten years after the date of implementation. In addition to the payment of €7,8m, where the terms are already met, and which will be paid on the date of implementation, the timed payments will be due on allocations not under control of the company.
Settlement
NTS may choose to make up all or part of the purchase price in shares in NTS.
After NOK €13,7m of the purchase price has been paid, NTS, on each payment of a portion of the purchase price, has the right, but no obligation, to fail to pay the current share. If exercised, MNH Holding may choose to repay a proportionate share of the shares calculated from the unpaid portion of the purchase price’s proportionate share of total purchase price or repurchase the shares for the total purchase price actually paid plus an interest rate corresponding to 3 months NIBOR, with a margin of two percent.
The implementation date is estimated at approximately eight weeks from 1st of October. The payment at the execution, corresponding to €7,8m, is planned to be financed with equity and foreign capital.
