MHG - Agreement to divest UK farming assets
BERGEN, Norway, March 27, 2014 (GLOBE NEWSWIRE) -- Marine Harvest is pleased
to announce an agreement to divest its integrated farming operations on the
Shetland and Orkney Islands to Cooke Aquaculture Inc. The operations have a
combined harvest volume of 17.4 thousand GWT estimated for 2014. The agreed
Enterprise Value (EV) is GBP 122.5 million, which corresponds to an EV/kg of
approximately NOK 70. Closing of the transaction is expected in the second
The divestment is a consequence of the remedies set forth by the EU Commission
for the approval of the Morpol transaction in September 2013. The EU
Commission required Marine Harvest to divest farming capacity on the Shetland
and Orkney Islands. The agreement is conditional on the EU Commission
approving that the purchaser and the transaction as well as the sales terms
satisfy these remedies.
The majority of the assets included in the transaction have been booked as
assets held for sale and Marine Harvest's volumes guidance will not be
affected by the transaction. Based on the year end 2013 balance sheet,
anticipated gain on the sale is approximately NOK 300 million. Final gain is
to be determined upon completion of the transaction.
A completion of the sale is likely to increase the potential dividend capacity
for Q1. The final Q1 dividend will be decided by the Board in connection with
the Q1 result announcement planned for April 30
Arctic Securities has acted as financial advisor and Wiersholm and Brodies
have acted as legal advisors in the transaction.
For queries please contact:
Ivan Vindheim, CFO +47 958 71 310
This press release may be deemed to include forward-looking statements, such
as statements that relate to the probability that the transaction will close,
certain harvest volumes, enterprise values, estimate regarding the closing of
the transaction, and anticipated and final gain from the transaction.
Forward-looking statements are typically identified by words or phrases, such
as "about", "believe," "expect," "plan," "goal," "target," "strategy," and
similar expressions or future or conditional verbs such as "may," "will,"
"should," "would," and "could." Forward-looking statements are Marine
Harvest's current estimates or expectations of future events or future
results. Actual results could differ materially from those indicated by these
statements because the realization of those results is subject to many risks
and uncertainties, including the risk that the transaction may not close. All
forward-looking statements included in this press release are based on
information available at the time of the release, and Marine Harvest assumes
no obligation to update any forward-looking statement.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Press spacebar to pause and continue. Press esc to stop.