Cermaq ASA (CEQ) divest its farming activity in Scotland to Morpol ASA
Cermaq ASA has today entered into an agreement with Morpol ASA to sell its farming and processing business in Scotland (Mainstream Scotland) to Morpol ASA for NOK 350 million enterprise value.
Cermaq’s Scottish farming business has over the last year shown a significant recovery from various improvement activities. Mainstream Scotland expects to harvest 6.500 tonnes salmon (gwe) in 2010 with expected good profit. Compared to Cermaq’s other farming activities, Mainstream Scotland has nevertheless been considered too limited to secure sufficient economy of scale, and various strategic opportunities have therefore been considered.
- A sale of the Scottish farming and processing activity to Morpol ASA is considered as a good solution for Cermaq, Morpol, Mainstream Scotland as well as for our Scottish employees, CEO Geir Isaksen comments.
- Cermaq has through Mainstream an ambition to be one of the leading global farming companies. The sale of Mainstream Scotland does therefore not impact Cermaq’s long term strategy, Mr. Isaksen states.
The Transaction:Total agreed enterprise value is NOK 350 million. Cermaq will recognize a gain from the transaction in the range of NOK 75 million, which will be included in the group accounts for third quarter 2010.
The transaction will further provide Cermaq with combined cash proceeds of approximately NOK 350 mill.
The agreement will be effective as from 25. August 2010.
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