Kaldvik AS Strengthens Fish Farming Presence in Icelandic Market
Frøya, Norway:
Kaldvik AS, a notable player in the fish farming sector, has made an impactful step forward in its expansion efforts. Recently, the Company confirmed the signing of definitive agreements to secure vital assets located on the east coast of Iceland, marking a pivotal moment in its growth story. This is especially exciting news for stakeholders and the broader aquaculture community.
The Agreement Details
The agreements involve a strategic purchase of several key entities enhancing Kaldvik's footprint. Specifically, these acquisitions include the purchase of 100% of shares in Mossi ehf., which manages a crucial property and building where Djupskel ehf. operates. Additionally, Kaldvik will acquire 100% of the shares in Djupskel ehf. itself, known for producing high-quality fish boxes in Djupivogur, from Osval ehf. The connections run deeper, as Osval is predominantly owned by Heimstø AS and smaller holdings from Osnes ehf.
Moreover, the agreement also involves acquiring a 33.3% stake in Bulandstindur ehf., a fish processing facility in Djupivogur. Kaldvik already holds a significant share of 67.7% in this facility, which makes the acquisition a strategic reinforcement of its existing operations.
Expected Timelines and Future Directions
Kaldvik anticipates these transactions will finalize by the conclusion of the first quarter of the next financial year. This timeline is critical for the Company as it seeks to augment its operational capacities significantly.
For clarity, the shares related to the purchase of Mossi may not be issued until the latter half of 2025. This is a minor detail but is noteworthy for those following shareholder movements closely.
Advisory Services
To facilitate these transactions, Kaldvik has enlisted the services of Pareto Securities AS as its financial advisor, while AGP Advokater AS has provided legal support. On the opposing side, ABG Sundal Collier ASA has been advising Heimstø and Osnes, ensuring a robust negotiation process.
About Kaldvik AS
Kaldvik AS prides itself on being among the leading salmon producers in Iceland and across the globe. A mark of excellence in their operations is the coveted AquaGAP certification, reflecting their commitment to sustainable and environmentally-friendly aquaculture practices. This certification not only positions Kaldvik favorably in the eyes of regulators but also appeals to eco-conscious consumers looking for premium seafood products.
The Company boasts a well-integrated value chain that allows for full control over each production stage, from hatchery through to sales. This comprehensive oversight enhances quality assurance and enables Kaldvik to meet the growing demand for sustainable seafood.
Frequently Asked Questions
What does the acquisition mean for Kaldvik AS?
This acquisition enhances Kaldvik’s operational reach and strengthens its position in the fish farming industry by integrating essential assets into its existing operations.
When is the transaction expected to be completed?
Kaldvik expects the majority of these transactions to be finalized by the end of the first quarter of the next financial year.
Why is AquaGAP certification important?
AquaGAP certification sets a standard for environmentally-friendly fish farming practices, helping Kaldvik appeal to both regulators and conscious consumers.
How does Kaldvik ensure quality in its production?
Kaldvik maintains a fully integrated value chain, allowing them to oversee the entire production process, thus ensuring high quality in their premium products.
Who has advised Kaldvik during this acquisition?
Pareto Securities AS served as the financial advisor, while AGP Advokater AS provided legal assistance during the negotiation phase of the transaction.
