Norwegian seafood merger –

Norwegian seafood merger Published:  02 February, 2011

Austevoll Seafood ASA (AUSS) has signed a deal with Norway Pelagic ASA (NPEL) regarding a possible merger between AUSS’s wholly owned subsidiary Austevoll Fisk AS and NPEL’s Norway Pelagic AS. NPEL will give shares to AUSS as compensation if the merger is completed

Norwegian seafood producer NPEL would thereby further fortify its position as the leading player in Norway’s pelagic industry.

“This is a major step in the ongoing consolidation and restructuring of the pelagic industry in Norway which will benefit both customers and suppliers and increase the added value for the fish landed in Norway,” NPEL said in a statement. 

Austevoll Fisk AS’s activities are based on pelagic fisheries in the North Atlantic and entail the purchase, production and export of pelagic fish. The subsidiary now owns 60 per cent of the shares of Sir Fish AS in Sirevåg, 100 per cent of Austevoll Fiskeindustri AS in Austevoll, 66 per cent of Modolv Sjøset AS in Træna, 50 per cent of North Capelin Honningsvåg AS in Honningsvåg and 25 per cent of Shetland Catch Ltd in Shetland.

This transaction excludes the business related to slaughtering and processing of salmon within Austevoll Fiskeindustri AS.

Both parties have agreed as an interim measure that 2,768,954 shares in NPEL will be given to AUSS in compensation in the merger deal, which if completed will boost AUSS’s ownership holding in NPEL from 33 per cent to 43 per cent.

The agreement was signed with reservations, such as inter alia due diligence investigations, required public permissions and authorisations, agreement on final merger consideration, that the boards of directors agree on a final merger plan and approval of the merger plan in the general meetings of shareholders in NPEL and the merging entities.

The due diligence investigations are anticipated to begin this month.