Fund uses stock market turbulence to increase shareholding.
The Norwegian Governments Pension Fund on Wednesday bought 261,323 shares in Bakkafrost, and after that owns 6,167,386 shares in the company, corresponding to a 10.4 per cent ownership interest.
This is stated in a so-called “flag announcement” on the Oslo Stock Exchange. The flag duty is triggered as The Norwegian Government Pension Fund passed ten per cent ownership in the Faroe salmon farming company.
It is not stated what stock price The Norwegian Government Pension Fund has bought the shares at, but Bakkafrost was just after lunch Thursday trading at NOK 509, after a fall of four per cent. This implies a cost price of around €11.7 million for today’s transaction.
Nordea Markets previously issued a sector report with a downgrading of seafood stocks. Here, the brokerage’s profit estimates for the next two years were shaved off by 40 per cent. Bakkafrost is Nordea’s sector favourite, although a price target of NOK 520 does not meet a purchase recommendation.
