SalMar ASA (SalMar) announced today that it intends to launch a cash offer to acquire all of the outstanding shares in Norway Royal Salmon (NRS) for NOK 11.7bn or NOK 270 per share. The bid is NOK 30 per share higher than the current bid for NRS by seafood provider NTS ASA. SalMar will distribute an offer document to NRS' shareholders after the required regulatory approval, expected in the first half of September 2021. The offer period will be four weeks. The bid is contingent upon at least 50% acceptance from NRS' shareholders.
NRS expects to harvest 56,500 tonnes of salmon in 2021 compared with SalMar's estimated catch of 195,000 tonnes. SalMar and NRS have several overlapping operations in northern Norway, the western fjords of Iceland, and offshore. SalMar expects that the combined operations would create significant synergies.
Nordic Credit Rating assigned an 'A-' long-term issuer rating to SalMar on 7 Apr. 2021. The outlook on the rating is stable. On 13 Apr. 2021, SalMar issued a green bond, raising NOK 3.5bn. On 18 Jun. 2021, the company raised a further NOK 2.7bn in new equity in order to pursue attractive growth and investment opportunities.
SalMar said in a statement that it has a number of available funding sources to finance the offer for NRS without impacting its dividend capacity and investments in the value chain, including, but not limited to, available cash and debt financing capacity based on the company's sound financial position.
We will monitor the prospective transaction as and when details emerge.
This commentary does not constitute a rating action.
If you have any questions, please contact:
Geir Kristiansen, credit rating analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
Mille O. Fjeldstad, credit rating analyst, +4799038916, mille.fjeldstad@nordiccreditrating.com