Portuguese retail giant buys into Norwegian cod farmer Norcod

Norcod will issue a total of 12,707,454 shares to the retailer, raising gross proceeds of NOK 157m.

The subscription price in the Private Placement will be NOK 12.375 per new share.

Norcod said the investment marks a major milestone for its business,”...significantly accelerating the company’s growth trajectory, strengthening its shareholder base, and laying the foundation for what could evolve into a long-term strategic partnership with one of Europe’s most respected and successful food retail groups”.

It believes the deal unlocks unique market opportunity. Together with Canada’s High Liner Foods and the Sirena frozen seafood group which are already investors, it maintains that Norcod is now uniquely positioned to serve a very large and growing international market for sustainable whitefish.

The proceeds from the Portuguese private placement will be used to finance Norcod’s further acceleration of its growth strategy. Completion of the private placement is subject to a Norcod extraordinary general meeting.

It will also give the Portuguese giant an 18% stake in one of Norway’s main cod farmers.

Jerónimo Martins is a Portuguese corporate group that operates in food distribution and retail. It has some 6,000 plus stores across Portugal, Poland and Colombia.

It is the group’s second venture into the Norwegian aquaculture sector. Just over a year ago it purchased two million shares in Andfjord Salmon for around £4.3m, increasing its stake in the business. It had already invested around £14m in the flow-through salmon farmer, two years earlier.