Leroy Seafood Group ASA and BioMar AS entered into an agreement

September 28, 2010 15:23

The Boards of Directors of Leroy Seafood Group ASA (LSG) and BioMar AS have entered into an agreement to the effect that LSG will purchase 50.71% of the shares in Sjøtroll Havbruk AS. Sjotroll Havbruk AS is active in the production of fry/smolt and farming of fish for consumption, and also slaughtering and processing, reports www.megafishnet.com with reference to Leroy Seafood Group.

The company's farming of fish for consumption is provided by 25 salmon and salmon trout-farming licences. Sjøtroll Havbruk AS also has a 27.5% shareholding in the breeding company SalmoBreed AS. Sjøtroll Havbruk AS has an annual forecast for 2011 of 26,000 gutted weight tonnes of salmon and salmon trout. The company has about 250 employees.

The shares are being bought for MNOK 540, which is equivalent to an enterprise value as at August of MNOK 1,298 on a 100% basis. MNOK 408.5 of the cost of the shares is being paid in cash, while the remainder is being paid in the form of 1 million shares in LSG at a share price of NOK 131.5.

The transaction is planned for mid-November 2010. The transaction is fully
financed.

The Board of Directors and the management of LSG are both extremely satisfied with what has been achieved by the agreement that has been entered into, and they look forward to further developing Sjøtroll Havbruk AS together with the company's shareholders, management and employees.

Following the purchase, LSG will have a production of salmon and salmon trout from 130 licenses in Norway, as well as significant production in Scotland. The group also has its own roe production and sufficiently meets the needs for high-quality smolt. As a result of the buy-out, the Group's central activities in the areas of fish-farming, processing, sales and distribution allow it to benefit from significant synergies.

Any questions or comments may be directed to the Chairman of the Board of Directors, Helge Singelstad + 47 916 61 001, or the CEO, Henning Beltestad
+47 911 43 545.

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