Salmar purchase 10 new licenses
The two parties have also agreed to conduct joint operations in Laksefjorden from 1 April 2012 and until the harvest of the 2015 generation.
"This investment significantly strengthens our position in Northern Norway," says CEO Yngve Myhre. "Greater production capacity gives us efficiency gains and through our joint operation with Villa Arctic AS, we will get a solid foothold in Troms and Finnmark, an area we strongly believe in," Myhre adds.
The purchase price is allocated as follows: NOK 110 million for the licenses and NOK 57 million for the remaining assets. It has been agreed that the purchase price will be adjusted upwards if the average NOS price of salmon for 2013 exceeds NOK 30.50 per kg ("first step"). A step model has been designed allowing for an additional consideration of NOK 15 million from the first step and up to a maximum of NOK 50 million provided that the average NOS price exceeds NOK 35.50 per kg.
The joint operation with Villa Arctic AS will commence on 1 april 2012 when SalMar acquires 50% of the biomass, a total of 500 tons, at the farming site Kvitelv. The harvest is expected to take place during fourth quarter 2012 and first quarter 2013. SalMar will be responsible for running the daily operations on behalf of the partnership during this period.
SalMar will be constantly seeking to exploit the increased licensed volume both through effective joint operations in Laksefjorden together with Villa Arctic AS, and through increased production at existing sites in Troms as well as possible new locations in Finnmark. After the acquisition, the company will operate 23 licenses in Troms and Finnmark with a total MAB of 21,735 tons (from previously 13 licenses and a total MAB of 12,285 tons). At full capacity, the acquisition will increase the harvest volume in the Troms and Finnmark region by 12,000 to 14,000 tons in 2013/14. The harvest volume for 2012 is not expected to increase significantly from a previously guided volume of 19,000 tons.
