MHG - Agreement to divest UK farming assets
March 27 2014 - 3:18AM
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 quarter.
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
Forward-looking Statements
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.
HUG#1772098
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