September 25, 2019 / 6:36 PM / 5 months ago

Fish farmer Bakkafrost bids $639 mln for Scottish Salmon

OSLO, Sept 25 (Reuters) - Faroese fish farmer Bakkafrost has agreed to buy a 68.6% stake in rival The Scottish Salmon Company from Northern Link Ltd and will bid for the remaining shares, Bakkafrost and The Scottish Salmon Company said on Wednesday.

The planned transaction, valuing Scottish Salmon at 517 million pounds ($639 million), will allow Bakkafrost to cut production costs by utilising greater economies of scale at a time of declining salmon prices.

Both companies are listed on the Oslo Stock Exchange, a unit of Euronext.

To fund the purchase, Bakkafrost plans to sell 7.33 million new shares to investors, which, if sold at Wednesday's closing price, would raise some 3.87 billion Norwegian crowns ($428 million).

DNB Markets, Goldman Sachs International and Nordea were appointed to lead the share issue, Bakkafrost said.

$1 = 0.8092 pounds $1 = 6.8200 Danish crowns $1 = 9.0500 Norwegian crowns Reporting by Terje Solsvik; Editing by Kirsten Donovan

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