Bakkafrost’s $404 Million Shares Offering

September 30, 2019

Cleary Gottlieb represented the underwriters, DNB Markets, Goldman Sachs International, and Nordea, in the private placement of shares of P/F Bakkafrost (Bakkafrost) to institutional investors in Norway and internationally through an accelerated bookbuilding process.

Bakkafrost sold a total of 7,328,709 shares, representing approximately 15% of the outstanding Bakkafrost shares, at a price of NOK 500 share, resulting in gross cash proceeds of approximately NOK 3.7 billion, or approximately $404 million. The offering closed on September 30, 2019.

The proceeds of the offering were used to finance the acquisition of 68.6% of The Scottish Salmon Company by Bakkafrost from Northern Link Ltd. The successful acquisition of the 68.6% stake triggered a mandatory tender offer by Bakkafrost for the remaining 31.4% free float in The Scottish Salmon Company.

Bakkafrost is the largest salmon farmer in the Faroe Islands. The Bakkafrost Group is fully integrated from feed production to smolt, farming, secondary processing (VAP), and sales. The Scottish Salmon Company is a leading salmon farming company with operational headquarters in Edinburgh, Scotland. The company’s operations are on the West Coast of Scotland and the Hebrides. The acquisition provides Bakkafrost with access to the Scottish salmon farming region, which is a niche farming region with Scottish provenance products priced at a premium to the market.