Bakkafrost takes control of Faroe Farming

BAKKAFROST has moved to acquire total control of fellow Faroese aquaculture business P/F Faroe Farming.

The islands’ largest fish farmer has entered into an agreement to buy the remaining 51 per cent of the shares for a cash consideration of 75 million Danish kroners (DKK).

The deal will give Bakkafrost 100 per cent of the shares in Faroe Farming as from tomorrow (Friday).

P/F Faroe Farming is engaged in smolt production, salmon farming, harvesting, portion production and sales.

Founded in 1993, the company was formerly known as P/F Salmon River and changed its name to P/F Faroe Farming in 2003.

It operates in Suðuroy, which is in the southern part of the Faroe Islands, where it holds three farming licences with total harvested volumes last year of 4,681 tonnes.

In 2015, Faroe Farming reported revenues of DKK 154 million and EBIT of DKK 13 million. Net profit last year was DKK 13 million.

Bakkafrost has also filed two licences to the Faroese authorities, giving the company 14 licences for farming salmon in the Faroe Islands.

Chief executive Regin Jacobsen said: ‘Bakkafrost expects salmon farming in Suðuroy can be significantly optimised. Bakkafrost has announced an investment plan for the next five years, and part of these opportunities can result in increased value for both Bakkafrost, and Suðuroy in general.’

Bakkafrost said the daily operations of P/F Faroe Farming will continue unchanged and the new acquisition would become a subsidiary of Bakkafrost.

But from January 1 next year it will merge into the wider Bakkafrost group. The transaction is subject to legal approval.

 

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