HB Grandi hf.: The sale of shares in Stofnfiskur hf.
In an announcement from HB Grandi hf. on October 23rd 2014, HB Grandi hf. disclosed that the Company had decided to enter into negotiations with a certain investor regarding the potential sale of the Company’s shares in Stofnfiskur hf.
An agreement to that end has been concluded between HB Grandi hf. and Benchmark Genetics Limited whereas Benchmark Genetics Limited will purchase all of HB Grandi hf. shares in Stofnfiskur hf. HB Grandi hf. shareholding amounts to 64.94% of total shares in Stofnfiskur hf. with a book value of € 7.1 million at the end of year 2013, according to HB Grandi hf. 2013 annual accounts.
As stated in the above-mentioned announcement Stofnfiskur hf. is the largest producer of salmon eggs in Iceland, as well as a leader in a modern aquaculture breeding program. Benchmark Genetics Limited is a subsidiary of Benchmark Holding Plc. which was founded in the year 2000 and is listed on the UK AIM stock exchange. Benchmark Holding Plc. specializes in the supply of applied biotechnology, sustainability science and knowledge transfer to animal health, aquaculture & agriculture and the food supply chain.
The purchase price of HB Grandi hf. shares in Stofnfiskur hf. is ISK 1.858.000.000 or approx. EUR 12.000.000 which will be rendered with a cash payment upon receipt of the shares. The purchase price will possibly be further adjusted based on Stofnfiskur hf.’s operating developments for the next three years. It is therefore possible that the purchase price will increase to a maximum of ISK 3.158.000.000 given that Stofnfiskur will reach its sales goals within the next three years. In addition an operating loan provided by HB Grandi hf. to Stofnfiskur hf., of EUR 8,6 million as of year-end 2013, will be paid up by Stofnfiskur hf. following the sale.
The Share Purchase Agreement is signed with provision to the completion of financing of the purchase by Benchmark Genetics. Since the sale does not meet the notification requirements under art. 17. a. of the Competition Act no. 44/2005 the sale is not subject to the condition that the Competition Authority has to be notified of it. The Authority will nevertheless be informed.
HB Grandi hf. advisors are Deloitte and Advel Attorneys at Law.
„We at HB Grandi hf. are pleased to have been able to participate in the operation of Stofnfiskur hf. And believe that the backing of Benchmark will facilitate further developments in the company’s operations and offer increased opportunities to expand internationally.” says Vilhjálmur Vilhjálmsson CEO of HB Grandi.