Marine Harvest takes $1.7-bn hostile bid to Cermaq shareholders
03 May 2013
After the board of Norwegian state-controlled fish-food maker Cermaq rejected its $1.7 billion offer, Marine Harvest, the world's biggest fishing company, today took its hostile takeover bid directly to Cermaq shareholders.
Marine Harvest, controlled by Norwegian billionaire John Fredriksen, had on 30 April launched an unsolicited 105 kroner per share bid for Cermaq, comprising of 53 kroner in cash and 52 kroner in shares.
The offer would be reduced to 104 kroner if Cermaq went ahead with its proposed plan of paying its shareholders dividend of 1 kroner.
The hostile deal is subject to a number of conditions including recieving two-thirds of the shares and Cermaq not going through with its proposed 3.49 billion kroner ($732 million) acquisition of Peruvian fishmeal company Copeinca ASA.
Cermaq, in which the Norwegian government owns a 43.5-per cent stake, rejected the offer saying that saying it undervalued the company and came with unacceptable conditions.
It also said that it would go ahead with its plan of acquiring the remaining nearly 50 per cent it does not already own in Lima-based Copeinca, the world's largest exporter of the salmon feed ingredients by volume.
Marine Harvest, which today disclosed that it acquired a 5.44 per cent stake in Cermaq yesterday, took its hostile bid directly to its target's shareholders, including the government.
Bergen-based Marine Harvest is the world's largest producer of farmed salmon with operations in Norway, Scotland, Canada, the Faroe Islands, Ireland and Chile.
The Oslo Stock Exchange-listed company also prepares and distributes a range of seafood products such as coated seafood, ready-to-eat meals, delicious finger food and smoked seafood in the US, France, Belgium, the Netherlands, Poland and Chile.
Norway's industry and trade minister Trond Giske, who is supposed to decide on Marine Harvest offer, is not likely to go against the decision of the board of Cermaq, according to analysts.
Norwegian government holds large stakes in other local listed firms like telecom major Telenor and oil & gas giant Statoil, but rarely does it interfere in the working of these companies.