After a long five-year sales process, Grieg Seafood is finally rid of Hjaltand, with EUR 50 million in sales gain.
Grieg Seafood’s shareholders breathed a sigh of relief. The salmon farmer’s “relief rally” continued after the sale of the problem business was confirmed on Tuesday night.
It was in the middle of the televised European Championship match between England and Germany that the message came in. Grieg Seafood had sold its subsidiary Grieg Seafood Hjaltland for GBP 164 million.
The announcement followed quickly after ongoing sales negotiations were confirmed in a brief stock exchange announcement on the night of Tuesday.
For a company that has long struggled with a debt-heavy and squeezed balance sheet, it’s hard to find a clearer BUY signal.
Shortly after the Oslo Stock Exchange opened on Wednesday morning, Grieg Seafood’s share price rose by 5.6 per-cent to NOK 87. In two days, Grieg has increased its stock market value by EUR 95 million.
- Read more: The company was founded by a German processor. But for the past 20 years, Hjaltland has not found a proper home
The transaction is expected to be completed by the end of the last quarter of the year, subject to approval from the relevant authorities and normal conditions for execution.
That means about EUR 186 million on the books, EUR 50 million in sales gain, and opportunities to advance the company’s extensive investment plans in Eastern Canada.