Cod farmer in merger talks
Troubled cod farmer Statt Torsk has entered into an agreement of intent with the Nordland white fish aquaculture business Vesterålen Havbruk AS, regarding a possible “business combination”.
In an announcement to the Oslo Stock Exchange late yesterday, Statt Torsk indicated that any merger of the businesses was at an early stage.
Vesterålen Havbruk AS is a white fish group primarily located in Øksnes and Bø municipality.
The company’s subsidiaries are involved in harvesting of farmed cod, processing facility for wild and farmed cod and some salmon. It employs around 200 people.
The Stock Exchange announcement said: “Statt Torsk is pleased to announce that it has received a letter of intent from Vesterålen Havbruk AS regarding a potential business combination, of which the structure is yet to be determined.
“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. Further announcements will be given when the process has been concluded. As part of the business combination.”
It added: “No assurances can be given as to the outcome of the dialogue with Vesterålen Havbruk, nor the timing of concluding the process.”
Statt Torsk announced a few days ago that it was carrying out a strategic review of the business. The company was hit by high mortalities and production difficulties in June which are likely to cost it almost £1m.
Earlier this week it reported that its second quarter losses had more than doubled to NOK 18m (£1.3m) with chief executive chief executive Gustave Brun-Lie saying the company needed capital to help it with its growth plans.
