Nordic Halibut acquires processor – and launches new equity issue

Nordic Halibut has entered into an agreement with Pure Norwegian Seafood (PNS) for the right to use the latter’s processing facility on Averøy, it announced to the Oslo stock exchange.

At the same time, Nordic Halibut and Måsøval, the main shareholder in PNS, have agreed on an agreement that gives the former an option to purchase 100% of the shares in PNS for an undisclosed purchase price.

This assumes that necessary agreements are entered into between Måsøval and the minority shareholders in PNS.

Pure Norwegian Seafood exports fish, mainly salmon, and provides processing and freezing facilities for local farmers.

In January, Nordic Halibut raised NOK 285m (£20m) in a share issue, of which NOK 100m (£7m) was earmarked for increased investments and design improvements related to the Tingvoll facility.

The company said access to the PNS facility on Averøy will be an important factor as Nordic Halibut now aims to scale up volumes to 10,350 tonnes ( HOG) in annual production by 2031.

Nordic Halibut CEO Edvard Henden added: “With this partnership, we take the final step towards full control over our entire value chain – from genetics to slaughter, processing and refining. Having control over the entire value chain enables us to maintain the highest quality standards and optimize efficiency, says in a comment.”

“By investing in local expertise and integrating all production links, we ensure long-term stability, strengthen our market position and promote economic development in the region,” he added.

The production line at the Averøy facility is described as “very flexible” and can process multiple species. The facility also has capacity for hygienic slaughtering, as well as “significant freezing capabilities.”

Meanwhile, Nordic Halibut said today that the subscription period for its offering of the launch of 1,150,000 new shares in the company at a subscription price of NOK 20 per share is underway. It is expected to raise gross proceeds of up to NOK 23m (£1.7m).