Bakkafrost continues expansion path with 27 per cent stake in Marine Harvest Faroes Published: 22 April, 2013
BAKKAFROST, the largest salmon farming company in the Faroe islands, has bought a 27 per cent stake in Marine Harvest Faroes for 54 million Danish kroners (about 7.24 million euros).
Marine Harvest is currently farming on five locations in the Faroes including a hatchery, but does not have any harvest stations. Bakkafrost is harvesting for them.
A statement from Bakkafrost said it “has reached agreement on the acquisition of 27.07 per cent of the shares in Marine Harvest Faroes for a total price of DKK 54.0 million. Following the transaction, Bakkafrost will control 27.07 per cent of the company’s shares. The agreement is subject to approval by the board of directors in Marine Harvest Faroes and approval from existing shareholders, as they have pre-emption’s right to acquire the shares”.
Commenting on the acquisition, chief executive Regin Jacobsen said: “We are very satisfied with the agreement. We see this as a good financial investment, as the outlook for the farming industry is promising. We are looking forward to cooperating with Marine Harvest in the future, as their farming sites are within our core area in the Faroe Islands.” Bakkafrost, which specialises in high quality salmon, acquired Faroe Seafood UK for an undisclosed figure last year and has already announced a £20-million expansion programme in the Faroe Islands. This acquisition gives it a direct route into Britain and it is preparing for a major expansion of production facilities at home coupled with a big push of frozen salmon fillets into the UK and Ireland. Mr Jacobsen said his company plans to be at the vanguard of the industry in the next 10 years.
He said on Faroese radio at the weekend that Bakkafrost was always interested in investments to expand the company, but most of the opportunities that were presented were not of interest in the end.
Over the last few years Bakkafrost has bought up three Faroese salmon companies, the Faroese fish feed factory, Faroe Seafood UK Ltd and now a part of Marine Harvest Faroes.