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Bakkafrost issues shares to settle remaining SSC debt

Chief executive Regin Jacobsen lent the company nearly 2.6 million shares to fund the SSC deal. Photo: Bakkafrost.
Chief executive Regin Jacobsen lent the company nearly 2.6 million shares to fund the SSC deal. Photo: Bakkafrost.

Shareholders in Faroese salmon farmer Bakkafrost have approved the issue a second tranche of new shares to finance the firm’s takeover of the Scottish Salmon Company.

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Bakkafrost has already paid £336.7 million to Northern Link Limited to settle 70% of the bill for that company’s 68.6% stake in SSC and will pay the remainder in shares.

At an extraordinary general meeting today Bakkafrost’s board was given the authority to issue up the six million new shares.

30% of debt

The board will issue 2,256,470 shares which will be given to Northern Link in settlement of the outstanding 30% of Bakkafrost’s debt.

Another 2,358,709 shares will be issued to resettle a loan of shares made by Bakkafrost chief executive Regin Jacobsen to the company to finance the SSC deal. Jacobsen’s shares, along with 4.8 million new shares issued by the board in September, comprised a private placement used to raise cash.

The 6 million share limit agreed at today’s meeting also means the board can offer up to 1 million shares to existing shareholders who were not offered the chance to subscribe to new shares in the private placement.

Increased stake

All the new shares issued have a subscription price of NOK 500 (£42.24).

Bakkafrost announced on September 25 that it had agreed a deal to buy Northern Link’s stake in SSC, and two days later revealed that it had increased its holding to 78% by buying shares held by other investors.

The salmon farmer’s deal with Northern Link values the whole of SSC at £516m.

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