Bakkafrost wraps up SSC purchase

BAKKAFROST formally sealed its acquisition of the Scottish Salmon Company at the weekend.

At an extraordinary general meeting in the Faroe Islands, shareholders authorised approval for the board to issue six million new shares to settle the outstanding debt.

The vote was overwhelming with 99.1 per cent in favour and just 0.9 per cent against the proposal.

Bakkafrost had earlier paid £336.7 million to Northern Link, SSC’s parent, 70 per cent towards the (£517 million) cost of buying 68.6 per cent of SSC.

The meeting at the weekend means the remaining 30 per cent will now be paid for in shares.

Bakkafrost said in a statement after the meeting that the approval will allow the board to issue:

• 2,256,470 new shares to Northern Link in settlement of the seller\’s credit granted by Northern Link at the closing of the company\’s purchase of Northern Link  holding of approximately 68.6 per cent of the equity instruments in the Scottish Salmon Company Limited; and
• 2,358,709 shares to DNB Bank for the purpose of enabling DNB Bank to redeliver the same number of shares borrowed from Regin Jacobsen (Bakkafrost CEO) in connection with the settlement of the private placement announced by the company on  September 25.

‘This will close the remaining matters relevant to the private placement of new shares announced on  September 25, 2019, and the share purchase agreement with Northern Link Limited for the majority of the equity instruments in the Scottish Salmon Company Plc,’ the announcement added.

CEO Jacobsen has already indicated that the company eventually plans to bid for the entire SSC shareholding.