NTS takes control of Icelandic fish farming company

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1810

The fully integrated Norwegian aquaculture group, NTS, is however dropping the outright acquisition of MNH Holding.

Listed NTS announced Sunday evening that it had entered into an agreement with MNH Holding for the purchase of 23.1 million shares in the Icelandic fish farming company Fiskeldi Ausfjarda, corresponding to 45.2 percent of the shares.

NTS’ wholly owned subsidiary Midt-Norsk Havbruk already owns 16.9 percent of the shares in Fiskeldi Ausfjarda.

Only assets
The share purchase agreement for NTS’s acquisition of Midt-Norsk Havbruk contained an option for NTS to purchase MNH Holding outright. The parties have instead agreed that NTS will purchase the shares from MNH Holding.

The price of the shares depends on the allocated license volume for salmon farming in Iceland, and increases linearly in proportion to the licensed volume allocated to the company. Upon entering into the agreement, the terms of a price of €7.8M for the shares will be met, so this amount will be paid on the date of implementation.

More to come
If the company achieves an increase in the licensed volume over a period of ten years from the date of implementation, the total purchase price may gradually increase to a maximum of €31.2M at 24,000 tonnes or more.

NTS may choose to make up all or part of the purchase price with shares in NTS.

The purchase of the shares is conditional upon the consent of the board of the company. Implementation is estimated in about eight weeks from now.