Norwegian cod farming company Statt Torsk has received a letter of intent from Vesterålen Havbruk regarding a potential business combination, just days after the company announced the launch of a strategic review seeking industrial partners.
The company announced via a posting to the Oslo Børs that it received a letter of intent, with a proposal that values the equity in Statt Torsk at NOK 255 million (USD 21.2 million, EUR 19.5 million) – which the company said would put a value per share of Statt Torsk of NOK 1.20 (USD 0.11, EUR 0.10) – and values Vesterålen Havbruk at NOK 610 million (USD 57.6 million, EUR 52.9 million). The transaction, the company said, could potentially involve the delisting of Statt Torsk shares from trading on the Euronext Growth Oslo market.
The valuation of Statt Torsk is roughly inline with the company's Q2 2023 update, which state the company has NOK 221 million (USD 20.8 million, EUR 19.1 million) in assets.
“Based on this Statt Torsk has decided to enter into a period of discussions with Vesterålen Havbruk to further explore the business combination and evaluate the proposal,” Stattt Torsk said. “Further announcements will be given when the process has been concluded.”
As a part of the potential business arrangement, the company said, it may “temporarily modify” its plans to transfer juvenile cod to its Rekvika site, while continuing to produce fresh cod from its Stokkeneset site “where the majority of the production is being sold on a long-term contract.”
Vesterålen Havbruk, Statt Torsk said in its release, is a whitefish company located in the Øksnes and Bø municipalities of Norway that is already involved in cod farming through its subsidiaries. The company also has processing facilities for wild and farmed cod and salmon, and in Q4 2023 the company will have its first stun and bleed vessel delivered – a vessel specialized for farmed cod. Vesterålen Havbruk has already had a production cycle of farmed cod, and is a privately held company with 200 employees.
“Further announcements will be given when the discussions are concluded, or Statt Torsk determines that disclosure is required or appropriate,” Statt Torsk said.
Photo courtesy of Statt Torsk
