Aerial view of Andfjord Salmon's Kvalnes site.
Andfjord Salmon Group.
Andfjord Holding AS has announced the completion of a major transaction with Portuguese food distribution group Jeronimo Martins Agroalimentar (JMA), selling 2,000,000 shares in Andfjord Salmon Group, or about 2.95% of total shares in the company, at the price of NOK 30 (EUR 2.55 / USD 2.84) per share.
JMA was already the largest shareholder in the Norwegian company, owning over 16.9 milion shares, representing a stake of just over 25% in Andfjord Salmon. With this latest tranche of shares, the Portuguese food giant has upped its stake to 18,959,855 shares, giving it 28% ownership.
The deal, valued at NOK 60 million (EUR 5.1m / USD 5.69m), marks a strategic move for both parties.
"For Andfjord Holding AS, the proceeds from the block sale will relief the company from the pressure of managing its wealth tax obligations, while allowing it to reduce its debt, which was tied to its forward exposure in Andfjord Salmon Group AS, covering approximately 2,000,000 shares," Andfjord Holding stated in a stock market press release.
"Following this transaction, Andfjord Holding AS will no longer have shares on forward contracts and thus no debt related to its ownership in Andfjord Salmon Group AS. relieving Andfjord Holding from tax burden and enabling it to reduce debt," it explained.
Meanwhile JMA, a subsidiary of Portuguese agri-food distribution giant Jeronimo Martins Group, indicated the share acquisition "reflects its confidence on a strategic project with given proofs in terms of quality and high-level standards of production."
Andfjord Holding said the transaction "further strengthens the sense of long-term commitment of Andfjord Holding AS and of JMA to support the company’s growth and future development, well beyond the ownership structure".
"We are very pleased that JMA is the buyer of these shares," said Roy Pettersen, CEO of Andfjord Holding. "JMA has been a key partner from the start, and their contributions at the board level have been instrumental to the success of Andfjord Salmon Group AS," he added.
Pettersen will remain a Board Member and shareholder of Andfjord Salmon Group, the company confirmed.
