August 24, 2016 / 5:15 AM / 3 years ago

BRIEF-Norway Royal Salmon buys 50 pct of Iceland's Arctic Fish for EUR 29 mln

Aug 24 (Reuters) -

* Norway Royal salmon has entered into an agreement to acquire 50.00 per cent of Arctic Fish ehf through a directed private placement in amount of eur 29 million, , thus forming a joint venture with the existing owners

* Norway Royal Salmon asa says remaining 50.00 per cent in Arctic Fish is controlled by Bremesco Holding Ltd and Novo EHF, with 47.50 per cent and 2.50 per cent respectively

* Norway Royal Salmon says will finance transaction through existing cash and loan facilities

* Norway Royal Salmon asa says through transaction, it is entering salmon farming industry in Iceland

* Norway royal salmon asa says arctic fish currently has licenses in three fjords with a total allowed annual production of 9 000 tonnes farmed fish

* Arctic Fish is currently building its own highly modern hatchery for smolt in Iceland, with close proximity to the farm sites. Following completion, the hatchery will have an annual capacity of around 7 million smolt

* There will be no changes to the management of Arctic Fish as a direct result of the Transaction

* Sigurur Pétursson serves as CEO of Arctic Fish after having founded the company in 2011. Arnór Gustavsson is the Farm Manager and Neil Shiran Thorisson is the company’s CFO

* In total 18 people are employed by Arctic Fish ehf and its subsidiaries as of August 15(th) 2016

* Norway Royal Salmon considers Iceland to be an exciting area for additional growth, and will following the transaction, be in a position to take a more active role in the development of the Icelandic salmon farming industry

* Fish farming in Iceland is a relatively young industry compared to that of Norway

* There are currently around six companies with salmon farming licenses in Iceland, where Arctic Fish is among the leading ones

* DNB Markets acted as sole financial advisor in the Transaction

* Arctic Fish has total liabilites of 1.2 bln Icelandic crowns ($10.3 mln) Source text for Eikon: Further company coverage: [ ] (Reporting By Ole Petter Skonnord)

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